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arm Profits and Factors Influencing Farm 
Profits on 370 Potato Farms in 
Monmouth County, New Jersey 



A THESIS 

PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL OF 
CORNELL UNIVERSITY FOR THE DEGREE OF 

DOCTOR OF PHILOSOPHY 



BY 

FRANK APP 



Reprinted from 

New Jersey Agricultural Elxperiment Station Bulletin 294 

New Brunswick, N. J.. September 20. 1916 



Farm Profits and Factors Influencing 

Farm Profits on 370 Potato Farms in 

Monmouth County, New Jersey 



A THESIS 

PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL OF 
CORNELL UNIVERSITY FOR THE DEGREE OF 

DOCTOR OF PHILOSOPHY 



BY 

FRANK AFP 



Reprinted fi'om 

New Jersey Agricultural Experiment Station Bulletin 294 

New Brunswick, N. J., September 20, 1916 






\ , 



I ' /9 



Farm Profits and Factors Influencing Profits 

on 370 Potato Farms in Monmouth 

County, New Jersey. 



BY 

Frank App, Agronomist. 



INTRODUCTION 

The problem of measuring farm; efficiency is commanding 
increased attention as the value of land increases. It is essential 
that some method be found to modify farming operations in 
order that they may be adapted to our modern conditions. The 
increased value of farm lands and other equipment requires a 
much greater amount of capital, which, too, is an important 
factor in demanding more efficient use of land and equipment. 
A generation ago, when land was cheap and could be obtained 
by settling upon a tract and improving it for farming purposes, 
there was no incentive to economize in the use of land. Today 
land values have increased to such an extent that in restricted 
areas some types of farming are prohibited because of the heavy 
land rental. In short, nothing but intensive cropping is profit- 
able, because large receipts per acre are necessary to return a 
profit for the cost of labor, fertilzer and rental. To a large 
extent this change of conditions is followed by a corresponding 
change of crops, but the proper adjustment, to be obtained 
accurately, must be found by careful and painstaking investiga- 



Prepared April 20, 1916. 



(3) 



tioii. This is a repetition of history in old civiHzed countries. 
As population increases, greater production is needed, and land 
values rise with the increased value of products obtained from 
the land. A continuous change of land values always affects 
the adjustment and proper organization of the farm. 

Still another factor, labor, has influenced farm operations. 
Throughout most farming regions the supply of labor is an im- 
portant factor. That it is becoming more so each year is evi- 
denced by the increased investment in labor-saving machinery. 

With these twd factors changing, namely, land values and 
labor, both of which influence the profits of the farm to a great 
degree, the problems of farm organization, farm efficiency, the 
proper type of farming, the proper relation of live stock to the 
farm, and the proper relation of land, labor and capital, entail 
many difficulties in clearly isolating measurable factors which 
bear directly on farm profits. Through this great lack of so- 
called efficiency on farms, and through lack of means of meas- 
uring efficiency factors by agricultural educators, the business of 
farming and the people interested in farming have been severely 
criticised by men in other professions. However, conditions are 
not as bad as Avould appear to the man in another profession. 
His business is largely controlled through his own initiative, 
while the farmer is to a large extent dependent upon nature. 
Losses may result through causes wholly beyond the control of 
the farmer. In short, there are many more factors entering 
into the proper manipulation of the agricultural industry than 
in manufacturing enterprises. Until recently we have not ap- 
preciated the need of methods by which to- measure farm effi- 
ciency or to ascertain carefully what these factors are. How- 
ever, with the readjustment of farming conditions, and the in- 
creased attention attracted by farming, this need is severely felt. 

Efficiency engineers have reorganized many manufacturing 
establishments with very productive results. So, too, has the 
farmer reorganized his farm business by introducing new ma- 
chinery and other labor-saving devices, and in some instances by 
increasing or decreasing the farm area or changing the type of 
farming to meet the current conditions. Moreover, many of 



these changes have come about by force of circumstances rather 
than through measurement of results to be obtained from such 
changes, or through the careful estimation of the need of them. 
This may have been no fault of the farm operator, for there was 
no definite information to guide him in making changes in his 
farming operations. 

The object of this bulletin is not to present a general treatise 
on farm management or farming conditions, but it is to deter- 
mine important factors which affect success and failure in- potato 
farming of Monmouth County, New Jersey. To a certain de- 
gree, the writer has attempted to determine the efficiency and 
measures of efficiency of a specialized type of farming, where 
potatoes are the principal crop. The conclusions reached should 
to a large extent be applicable to similar regions where potatoes 
are a specialized staple crop. 

METHOD OF OBTAINING DATA AND INFORMATION 

In gathering the data for this survey, each farmer was visited 
by a man who obtained the necessary information from him di- 
rectly by personal interview. Far a type of farming consisting 
largely of potato growing, this is not as difficult as for a more 
diversified type. The major portion O'f receipts and expenses is 
in lump sums, a condition which simplifies tO' a large degree the 
work of taking the record. Each man was detailed to a defimite 
territory, and required to visit every farm, whether good or 
bad, prosperous or otherwise. The traveling was done by 
bicycles, which appear to furnish the most -efficient means where 
good roads pirevail. While a horse and buggy is commonly used 
in this work, it is not as efficient in covering distance and saving 
time as the bicycle. 

All records were recopied on an office blank and checked sev- 
eral times to discover any possible errors and make the proper 
corrections. 

It is essential that men who take records be quick to think, 
knoAv how to approach a farmer, and be familiar with farming 
conditions in the neighborhood. Occasionally it is necessary for 
a man to go back tp a farm and check over his record or correct 
some oversight.. Thus the accuracy of survey work and survey 
records depends in no small degree on the men who do the work. 



DEVELOPMENT OF THE POTATO INDUSTRY IN MONMOUTH 

COUNTY AND ITS RELATION TO THE DEVELOPMENT 

OF OTHER AGRICULTURAL PRODUCTIONS 

Monmouth County is considered among the most prosperous 
counties in the United States. Since the early history of its 
agriculture it was always regarded as a prosperous and flourish- 
ing farming region. According to the United State Census Re- 
ports, we find the development of the potato industry from 
1840 up to the present time as given in Table I. 

Table I. — Production of Potatoes, Rye and Corn in Monmouth County, New 

Jersey, 1840-1910. 

Potatoes. Rye, Com. 

Year. bu. bu. bu. 

1840, 273,280 39,368 493,554 

18.50 773,272 82,833 841,072 

1860 1.051,525 97,224 859,877 

1870 1,263,403 46,567 760,479 

1880 796,388 133,560 1,048,940 

1890 914,286 158,443 875,847 

190O 926,035 126,700 1,029,560 

. 1910 1,893,523 162,323 1,099,656 

For the entire period potatoes have been crowding the other 
crops. Hence the only two staple cash crops that have increased 
in quantity to any appreciable extent through this whole period 
are rye and corn. The production of wheat has increased from 
the 1840 period, but appreciably decreased from the 1850 period. 
Between 1840 and 1850 potatoes made a remarkable increase. 
The same is again shown between 1900 and 1910. The yield 
for 19 10, as given by the census, is 128 bushels per acre, which, 
if compared to- our survey results, is quite low. The average 
yield by the survey was 83 barrels, or 228 bushels, per acre, 
almost double that shown by the 1910 census report. This is 
in all probability due tO' the climatic conditions of the year of 
1909 for potato production. The season was hot and dry, cir- 
cumstances which depressed the potato^ yield for the State very 
markedly. Therefore, the census does not show the representa- 
tive potato production for the county, since the year 1909 fur- 
nished abnormal climatic conditions with respect to potato 
growing. 

The total production of potatoes from these 370 potato farms 
alone, 'in 1914, was 2,207,375 bushels, or 802.682 barrels. 
Therefore, it would be a conservative estimate to place the pres- 
ent production of the county at 4,000,000 bushels. Around the 
Freehold district, potatoes are by far the dominating crop for 
most of the farmers, and other crops and stock are sacrificed to 
devote most of the energies and time to potatoes. In the eastern 



7 

part of the county trucking and dairying are quite prominent, 
but the potato still remains important as a cash crop, though no 
longer the major source of income. In the western part of the 
county potatoes are combined with more farm stock, including 
hogs and dairy cows. This necessitates larger areas of corn, 
rye and hay. Here the soils become too heavy for the most 
profitable production. The heavy soil conditions increase the 
cost of tillage, as well as decrease the acre yields. In the early 
history of the county cows, hogs and sheep were prominent in 
the farmers' business, but now this live stock has been sacrificed 
in many cases for the potato. The census of 1840 reports 
19,592 head of cattle and 23,241 hogs. In 1910, 9,256 
dairy cows and 14,132 hogs "are reported; sheep have decreased 
in number from 13,696 in 1850 to 1,333 in 1910, while during 
the survey of 1914 less than 100 sheep were found. In short, 
we find that in this county's earlier history potatoes were grown 
rather freely, but the greatest and most rapid development has 
come about within the last fifteen years. From 1900 to 1910 
we find an increase from 926,035 bushels to 1,893,523 bushels, 
and 1914 and 191 5 to approximately 4,000,000 bushels. The 
area devoted to potato growing increased in 1900 to 19 10 from 
8,910 to 14,784 acres, VN^hile in 1914 there were 9,671 acres of 
potatoes on 370 potato farms alone. Evidently, the industry 
has not yet reached its highest limit, for this is approximately 
one-third of the total crop acres on the farms, and later data 
will throw further light on the efiect of increasing this acreage 
to 50 or 75 per cent, of the farm crop area. Whether potatoes 
will in the near future give way to another crop is doubtful, 
since when raised on the intensive scale, they can successfull^^ 
compete with other staple truck crops. If land is selected which 
is best adapted to potato culture, nothing short of disease or ex- 
treme market fluctuation is likely to decrease the importance of 
this crop in the county. 

LOCATION AND DESCRIPTION OF MONMOUTH COUNTY 
POTATO AREA 

The Freehold area, which is the center of the potato region 
in the county, is 42 miles from New York City, 30 miles from 
Trenton and 70 miles from Philadelphia. From Freehold as 
a center, the area in which potatoes predominate reaches north 
about six miles tO' Robertsville, thence the boundary extends- 
northeast, passing within one mile south of Morganville, and' 
continuing northeast to about one mile north of Crawford's 



Corners. Tlie eastern boimdary extends east almost to Lincroft, 
Tinton Falls, Scobe3rville and Colts Neck. The southern bound- 
ary lies about three miles south of Freehold and extends from 
the headwaters of the M'anasquan River, west through Smith- 
burg, and thence northwest to Bergen's Mills. The line from 
this point runs approximately northeast to Robertsville, including 
Englishtown and Tennent in the area. 



MONMOUTH 



COUJJTY 



Oil 



J/ Jr^ I- ^^^^^ 



- rmmtmp urn 




' .^■ 



/ 




Fig. 1. — IViap of Monmouth County, New Jersey, Showing Potato Area 
Included by this Survey. 



This whole area is largely overlaid with Collington, Sassafras 
and Colts Neck soils. The topography is level to gently rolling, 
with good drainage. The section is well equipped with railroad 
shipping stations, facilities which help to make this industry 
possible. The Freehold branch of the Central Railroad of New 
Jersey leads from Freehold north through Morganville. Farm- 
ers in the eastern section of this area can reach the Red Bank 
branch of the New Jersey Central, while the northeastern por- 
tion is within reach of the New York and Long Branch Railroad. 
The Pennsylvania Railroad enters Freehold from the southeast 



and continues in a northwesterly direction through Tennent. 
With the exception of a small section around Colts Neck, most 
of this area is within four miles or less of a railroad. This is 
important for an industry requiring- such a large amount of 
hauling in a comparatively short time. The roads of this area, 
some of which are macadam, are usually good. This enables 
the potato growers to haul heavy loads, and thus economize 
in marketing their product. The area is thus with a com- 
bination of soils, railroad facilities, and improved dirt and ma- 
cadam roads, which fits it admirably to intensive and extensive 
potato culture. Other parts of the county have one or two of 
these requirements, such a^-railroads and dirt roads, or soils 
and good dirt roads, but the third factor is missing. The other 
types of soil are not so well adapted to the production of the 
crop, and where they prevail, either trucking, dairying or more 
general farming is substituted for this industry. 

SOILS 

The soils of this potato area, as mapped by the Geological 
Survey oi New Jersey and the U. S. Department of Agriculture,^ 
consist of unconsolidated and nearly horizontal beds of green- 
sand marl, clay, sandy clay, and gravel. This material has been 
modified by the elements, forming soils that are easily tilled 
and light in texture, with the light loams, sandy loams, and loamy 
sands predominating. The Sassafras series has a light brown 
to yellowish color, with sub-soil of bright yellow to reddish 
yellow color. The upper sub-soil may be heavier than the surface 
soils, but the lower surface soils are usually lighter, grading 
into sand or gTavel. This usually helps to insure good drainage. 

The Colli.ngton soils have a brown to a reddish brown surface, 
and a yellowish brown-yellow or greenish yellow upper sub- 
soil, changing to a dark green or olive green sub-soil of the 
heavier members. These soils are derived from' greensand 
deposits made along the Coastal Plain Province. 

The Colts Neck series shows a brownish red to dark red colored 
surface soil and a deep or bright red colored sub-soil. The sub- 
soil is light in texture. O'f the three series, Colts Neck is not 
so well adapted to potato production as are the Sassafras and 
Collington. Its soils are inclined to be more droughty, and are 
better adapted to the early truck crops, while the high con- 
tent of iron makes a rough potato skin. All these soils are 
easily tilled, and lend themselves well to successive growing of 

*U. S. Dept. Agr. Bur. Soils, Advance Sheets, Field Operations, 1913. 



10 

a cultivated crop, such as potatoes, as long as the organic matter 
is maintained through the use of cover crops. In fact, some 
of these soils are so light that it is necessary to have a growing 
crop upon them in the form of a cover crop to prevent their 
blowing during the winter. Again, their physical character 
allows them to be worked early in the spring and very shortly 
after a rain. They thus afford a more regular and better dis- 
tribution of labor than would be possible on a heavier soil. 
The farmer need not wait such a long period of time after a 
rain until he can resume his tillage, and again he can get upon 
his soil early in the spring, as well as do part of the plowing 
during the winter months in some seasons. This is an important 
item for a crop which requires or is given intensive culture such 
as the potato in this region. Most farms have more than one 
soil type upon the place, and usually the soils or soil types best 
adapted to the potato crop are given over to this industry. The 
remaining portion of the farm is devoted to other crops, which 
usually comprise hay, corn and rye. In spite of the fact that 
land values are high in this area, there remains a relatively large 
proportion of uncropped acreage per farm! For the owner 
farms this amounts tO' 25.8 per cent, of the total farm area, 
and for the tenant farms 30 per cent. Some of this land is 
used for roads, lanes and buildings, and the remainder is a 
waste land temporarily uncropped, with a very small area of 
woods and pasture. However, the amount of uncropped area 
is surprisingly large, when we consider the high value of this 
land. But, due to the fact that these soils are easily tilled, dry 
off quickly after a rain, are naturally fertile, are suitable for 
successive cropping of a cultivated crop so long as the organic 
matter is maintained in the soil, they lend themselves admirably 
to specialization, and intensive as well as extensive culture of the 
potato. 

(See Figs. 2 and 3, following page 16.) 

CROPS 

No definite system of rotation is followed on these potato 
farms. Wherever some system is practiced, the rotation may 
consist of potatoes one or more years, hay one or two years, 
and com one year. Another system which is quite largely used 
consists of potatoes .one or more years, rye or wheat one year, 
hay one or two years, and com one year. Again, others attempt 
no rotation at all, and crop potatoes on the same area for an 
(indefinite period. In such a case, corn, rye or wheat, and hay, 
may be rotated on other fields. However, the custom of raising 



II 

potatoes continuously on the same area appears to be growing, 
and this practice restricts the potato area from the rotated por- 
tion of the farm. This is comparable to the use of alfalfa on 
most O'f the farms in other regions. The area, for the time it 
is occupied by the crop, is thrown out of the rotation as long 
a,s the crop is successful. It is not uncommon to find a portion 
of the farm growing potatoes continuously, while in another part 
potatoes are used in a tentative rotation with corn, rye or wheat 
and hay. That the farmers of this section are able to grow 
potatoes continuously on the same area is due to their systematic 
use of cover crops and heavy fertilization. While this system 
appears to militate' against all rotation principles, both from the 
standpoint of agronomy and' farm juanagement, yet these farms 
are very successful in maintaining their potato yields and in 
handling their labor economically. Thus it is a system peculiar 
in itself, but apparently adapted to the conditions as described 
in this area. 

On these 370 potato farms there were 29,156 crop acres. The 
areas devoted to each crop are shown in Table II : 



Table II. — Acreage of Crops on 370 Potato Farms in Monmouth County, 

New Jersey. 



Potatoes. 

Owners 5,151 

Tenants, 4;650 

Part Owners, 624 

Total, 10,425 

Wheat. 

Owners, . . . . 534^^ 

Tenants 651 

Part Owners, . . . 69% 

Total, 1,255 



2,451 
'2,306 
2741/2 

5,031.1/2 



Apples. 
616 
6S6y2 
70 



Hay. 

2,913 

2,914 

389 

6,216 

Peaches 
and Pears. 

146i/o 
100 
23 



1,3721/3, 



26914 



Rye. 

1.543% 

1,516% 

140 

3,200 



675 
334 

38 Ya, 

1,047% 



Alfalfa. 

128% 

187% 

19% 

335% 



Total. 
14.1.59 
13,349 

1,648 

29.156 



Of the total crop acreage, over one-third is in potatoes. Hay 
follows v/ith about one-fifth, while corn is third with one-sixth 
of the area. Rye ranks fourth with a little over one-tenth, folr 
lowed by apples and wheat, each with about one twenty-fifth of 
the area. Alfalfa and peaches each occupy about one per cent, 
of the total crop acres. One twenty-fifth is devoted to truck, 
comprising asparagus and various other crops. 

The proportion of these different crops does not vary materially 
among the farms of the owners, part owners, and tenants. How- 
ever, the tenants have a smaller proportion in potatoes and a 
larger proportion in hay and small grains. This is not surprising 
v/hen it is recognized that the potato corp requires a large cash 



Tenants. 


Owners. 


Average, 


29.9 


31.3 


28.2 


18.7 


19.5 


16.8 


14.8 


13.7 


13.6 


9.S 


7.0 


8.7 


4.2 


3.5 


3.7 


4.2 


3.5 


3.4 


1.1 


1.0 


0.9 


0.7 


1.0 


0.7 


2.1 


1.9 


2.8 



12 

surplus upon which to do business and is a more risky crop. 
Hence, unless the landlord finances the tenant, he is frec^uently 
unable to make the necessary heavy investment for seed and 
fertilizer. 

Table III. — Area of Various Crops per Farm on 370 Potato Farms in Mon- 
moutli County, New Jersey. 

Crop, Owners. 

Potatoes, 26.5 

nay 15.0 

Corn 12.6 

Rye 8.0 

Apples 3.2 

Wheat, . .' 2.6 

Alfalfa, 0.8 

PcacUes, 0.8 

Truck, 3.5 

Total 73.0 85.5 82.4 78.8 

Though we find most of the staple crops grown on these potato 
farms, the majority produce sufficient only to supply feed for 
their work stock, a few ccws, hogs and chickens. The corn and 
hay are fed almost entirely to the stock, while the wheat and rye 
are used for feed and cover crop seed. 

A larger proportion of rye is sold than of any other staple 
crop with the exception of potatoes. Some faimers practice 
selling rye in the bundle at a fixed price per ton, including straw 
and grain. Other thresh the crop, sell the straw separate or use 
it for bedding, keep sufficient grain for their cover crop and dis- 
pose of the remainder. 

Although the average farm acreage devoted to orchards is 
comparatively large, the majority of the orchards are only for 
fa:mily use. A limited number maintain commercial orchards, 
but not as a main source of their income. This has increased the 
average so that it appears rather high. For the year in which 
the survey was taken most of the orchards showed little or no 
profit. Many of those who were making an effort to diversify- 
with fruit were becoming discouraged with the markets and the 
returns received from fruit. Evidently, potatoes were proving 
more profitable than fruit, and less risk appears to be entailed in 
potato farming. 

A number of farms produce some truck on the lighter soils. 
This chiefly comprises asparagus, sweet corn, tomatoes and a 
few peppers, carrots and turnips. For some farms this furnishes 
considerable revenue, but it appears to be limited to the soils too 
light for profitable potato production in the majority of cases. 



13 

Thus the truck growing is regulated to a large extent by the soils 
and soil types. 

The area of alfalfa is quite small on these farms, averaging 
less than one acre per farm. Of this the owners have a slightly 
smaller area per farm than the tenants and part owners. How- 
ever, the merits of alfalfa are just becoming known among these 
farmers, and they are only recently learning to handle the crop 
successfully. As soon as the proper handling" of alfalfa is 
better understood by all the farmers, it may come into far 
greater prominence in this area. By the more common use of 
alfalfa the acreage needed to grow sufficient hay to feed the work 
stock can be decreased, leaving^a larger. area for potatoes and corn 
or rye. Again on these liglit soils, timothy and other grasses 
are not highly productive, so that a good substitute for fc^rage 
obtained from the grasses would be alfalfa. Furthermore, alfalfa 
is well adapted to succeed potatoes, since the destruction of weeds 
by the thorough cultivation such as potatoes ordinarily receive, 
prepares the seed-bed well for the alfalfa seeding. After the 
potatoes are dug, without further plowing, the area can be limed, 
harrowed and seeded with a minumum amount of labor and 
expense.-^ Thus this crop should become far more important in 
the future on these farms. 

FARM PRACTICE 

The farm practice oi these farms is unique, as we would expect 
in such a type of farming. In many respects individual practices 
differ, but the method of handling the potato crop is rather 
uniform. 

The basis and means of maintaining such an intensive industry 
depend to^ a large extent on the universal use of cover crops. 
There is no area in the State where cover crops are given such 
careful attention as on these potato farms. It is only through 
this practice that the farmers are able to maintain soil fertility. 
In many instances the fertility and acre production appear tO' be 
increasing rather than decreasing where the cover crops are skill- 

^ Furthermore, the season's tillage given the potatoes tends to form an ideal 
seed-bed for the succeeding alfalfa. This thorough cultivation given the 
potato crop makes a fine loose surface soil to a depth of two or three inches 
and leaves the lower soil compact and firm a^ is desirable for a good 
alfalfa seed-bed. Thus we have a fine loose mulch on the surface, free of 
weed seeds, overlving a firm compact soil underneath. This compactness 
establishes the capillarity, making the upper surface inches of soil more moist 
and affords surer germination and more vigorous autumn growth, than is 
ordinarily obtained when the seed-bed is prepared from rye or wheat stubble. 



fully handled. Wheat, rye and crimson clover are the most com-' 
mon cover crops. But some crimson clover is seeded alone, at 
the rate of a peck or a half of a bushel to the acre. Others use 
i>4 to 2' bushels of rye, while many use wheat. A large number 
combine crimson clover with rye or wheat, using 4 to 8 quarts 
of crimson clover with i to i>^ bushels of either rye or wheat. 
This makes a better cover crop because of greater growth of the 
wheat or rye, combined with the value of the clover in adding 
nitrogen. Furthermore, the rye or wheat protects the clover so 
that it will live through the winter more successfully than if 
seeded alone. Some of the larger growers who do^ not finish 
digging until quite late, omit the clover and use only rye or 
wheat, since the late season allows for little development of the 
former. Therefore, to some extent the time of digging influ- 
ences the nature of the cover crop used. For the latest seedings 
rye is more commonly used since it is more hardy than wheat 
and will give a more satis factor}^ cover when seeded late. Wheat 
appears to be more popular for the earlier seedings. It makes 
a more leafy growth, and if the spring plowing is delayed it 
does not make such a rapid gTOwth in the spring. Some of the 
fields will not grow crimson clover successfully, probably because 
of need of lime. Though this clover will stand a certain amount 
of acidity, it will eventually be driven out of acid soils. 

Thus at a cost of $1 to $3 per acre for cover crop seed, to- 
gether with the use of chemical fertilizer, it appears possible to 
maintain the organic content of these soils and keep them pro- 
ductive for continuous cultivation of potatoes. 

This system is independent of the use of live stock which is 
almost universally looked upon as necessary in maintaining fer- 
tility. Neither do these potato growers, as a rule, buy or apply 
manure as is frequently the custom among truckers. 

When potato ground is seeded to rye or wheat it is not neces- 
sary to replow but merely to prepare by harrowing and to seed 
the crop. This makes it economical in the use of labor as well 
as in the use of fertilizer. Unless the potato ground is quite 
light, sufficient residual fertilizer will be left after the potatoes 
are dug to grow the rye or wheat without additional application 
of fertilizers. Sometimes grass for the next year's hay is seeded 
after potatoes, without plowing, but by preparing with the har- 
row only, in the same manner as for the seeding of alfalfa. 

On some of the lighter sandy land, cowpeas are seeded, plowed 
under and the area seeded to rye. Yields on such areas are low, 
yet considerable straw is produced. Hay is ordinarily left, in 



15 

the rotation one year only. On these Hght soils it is not profitable 
to allow a field to remain in grass after the clovers have died 
out. 

(See Figs. 4 to i8, following page i6.) 

FERTILIZERS 

The potatoes are given the major portion of all the commercial 
fertilizers purchased. This is an important charge against the 
crop for the application is heavy. The usual amount is 1,200 
to 1,800 pounds per acre. This is applied in the row at the 
time of planting the potatoes. In this way labor is saved over 
the separate application as followed in some potato-growing 
regions. The rye is lightly fertilized when it does not follow 
potatoes. On the lighter soils fertilizer is used at the rate of 
200 to 400 pounds per acre for rye. Corn is frequently fertilized 
at the rate of 300 to 400 pounds of commercial fertilizer per 
acre. On the corn much of the manure obtained from the stock 
is applied. The igrade of fertilizers most commonly used is one 
showing an analysis of 4-8r-io, i. e., 4 per cent, of nitrogen, 8 
per cent, of phosphoric acid and 10 per cent of potash. As a 
potato fertilizer it is of a higher grade than that used in the 
Maine potato region where a 5-8^7 grade is used. The Maine 
growers have increased their nitrogen i per cent, over the New 
Jersey growers, but cut the potash down 3 per cent. It would be 
expected that the Maine growers need more nitrogen in their 
fertilizer since they do not grow cover crops to plow under, but 
use a rotation of potatoes, oats and clover, each one year. The 
clover is harvested for hay, leaving a clover sod to plow under for 
potatoes. Evidently, this sod will not furnish as much nitrogen 
under conditions in Maine as the cover crop of the Monmouth 
County farmer does under conditions in New Jersey. Whether 
the high -application of potash is needed for New Jersey condi- 
tions is a debatable question. Since this survey was made, the 
influence of war on the cost and supply of potash has necessitated 
a much smaller application of' potash with apparently good re- 
sults. Recent work done by the Monmouth County Farm Bureau 
indicates an excessive use of potash when applied in the propor- 
tion of 4-8-10. Further work is needed to determine this matter 
definitely. 

The fertilizer used for the corn is usually a 2-8-10 or some 
potato fertilizer, and the same is used for rye. A very limited 
amount of top-dressing for hay is practiced, nitrate of soda 
being used frequently for the purpose. 



i6 



MONMOUTH COUNTY FARMERS' EXCHANGE 

The development of this great potato industry has given rise 
to a very successful and well-known org'anization, the Monmouth 
County Farmers' Exchange, composed of potato producing 
farmers. So phenomenal has been its success that it is known all 
over the eastern states and cited as an example of a successful 
farmers' organization for buying and selling the farm products 
of its meniibers. These potato farmers have solved their own 
market problem in a very efficient and expedient manner. This 
publication would not be complete without a brief description of 
this well-known farmers' exchange. 

Unlike many potato growers, the Monmouth County potato 
farmers sell practically all of their crop direct from the held. 
This throws on the market a large amount of potatoes from a 
small area in a short space of time. Consequently, unless the 
marketing of such a product is handled systematically, there is 
sure to be great fluctuation in price. Such were the existing con- 
ditions in the countv several years ago. The price of potatoes 
is said to have varied as much as 40 cents a bushel in a single day. 
Quite frequently the prices changed three or four times a day and 
dropped to 25 cents a bushel during the day. At that time each 
loading station had a buyer representing chiefly New York and 
Philadelphia firms, who bought on commission for about 10 
cents a barrel. 

With the increased production of potatoes, conditions con- 
tinued to gTow- worse and the marketing of the potato crop was 
very unsatisfactory. At a meeting of the Pomona Grange held 
at Keansburg in 1907, a committee was appointed tO' investigate 
the markets. In the fall of 1907 a committee was sent to visit 
the Produce Exchange of the Eastern Shore of Virginia. The 
committee brought back a very promising account of the Eastern 
Shore of Virginia Produce Exchange. They persuaded the man- 
ager to come to Freehold, and address the Monmouth County 
farmers in the Court House that winter. Through these efforts 
an organization was formed in March, 1908, under the corpora- 
tion laws of New Jersey, with an authorized capital stock of 
$100,000. Shares were issued at $5.00 a share with a 20-share 
lim.it. A paid-in capital of $7,000 was obtained the first year. 
Officers including a president, secretary, treasurer, manager and 
eleven directors were elected. Each director represented one of 
the principal loading stations in the county. 

The first year the total business amounted to $454,414.11. 




mjE ^t— ^ 





&»■■ 



Fig. 2. — A Typical Group of Farm Buildings in Monmouth County, 

New Jersey. 



^-.. .^% m ft* 





Fig. 3. — View of a Monmouth County Farm, Showing the Good Dirt Road, 
Typical of the Region. 



- ^^'^Tf J 




Fig. 4. — A Monmouth County Farmhouse. 



■^ 





Fig. 5. — View of Outbuildings on a IVIonmouth County Farm. 




*«*«»' 




Fig. 6. — Rye Stacks on a IVIonmouth County Farm. When there is Not Room to 
Store All the Grain in Buildings, it is Commonly Stacked in the Fields. 




Fig. 7. — Putting on the Finishing Touch in the Preparation of the Soil for 
Potato Planting, Using a Meeker Smoothing Harrow. 





Fig. 8. — Potato Planting Time on a Monmouth County Farm. Thorough 

Preparation of the Soil, Generous Use of Chemical Fertilizers, and 

Constant Cultivation Resulted in a Yield from this Field of 

370 Bushels per Acre, with 5 Per Cent, of Potash 

in the Fertilizer. 









'. ' 


,ii 


. ■ i 

,, ■•'■ ^ ••J 



Fig. 9. — A Well-prepared Field, Showing the Ridge Thrown Over the Rows 
to Protect from Frost and Freezing, as Well as to Indicate the Row. 




Fig. 10. 



-The First Cultivation, Showing the Cultivator Teeth Reaching 
to the Bottom of the Plowed Layer. 



^ 





Fig. 11. — Levelling the Ridges, After the First Cultivation, with the 
Meeker Smoothing Harrow. The Potatoes Are Not Yet Up. 




Fig. 12. — Eight Weeks After Planting; Plants About 6 Inches High. 

This Field Yielded over 400 Bushels to the Acre with only 2 Per Cent, 
of Potash in the Fertilizer. 




^f^^' 







L. -« • -*«*#ifc V • . 







- - • *ftx 










Fig. 13. — Cultivation with the One-horse Cultivator When the Plants 

Are 6 Inches High. 











Fig. 14. — Dusting with Paris Green and Cultivating with a Two-horse 

Riding Cultivator. Careful Cultivation Keeps Down Weeds 

and Should IVlal<e Hoeing Unnecessary. 



Bg 






THE BEETLE 


BW!^- 






POTATO DUSTER ' 




fl^ 


^E^ 


i^Mrt 


j-^^S-.-'-aa-i. -■t'^i!^,^"^;*^ 


^^^ KB9 


f -c ^w^^MftJMJfeMH 


^^M 


^^^^ 


„.^^p9l^^^}I^^^M^^^^S^^SH^^^H 


^mP 


ji|^ 




^^^^^^« 


Wm 


gH 


^1^ 


■■■■■ 



Fig. 15. — ^The Potato Beetle Duster in Operation.^ 
^ Used by courtesy of Leggett and Bro., New York. 



^ Owiil*'pp 



m^Ltcsmi^ 




Fig. 16. — Looking Down the Rows of a Potato Field on the Farm of H. V. 

M. Dennis, President of the Monmouth County Farmers' 

Exchange, Freehold, N. J. A Solid Mass of 

Luxuriant Vegetation. 




Fig. 17. — Digging Giant Potatoes on a IVIonmoutii County Farm. 




Fig. 18. — Potato Harvesting Scene on a Monmouth County Farm, Show- 
ing IVIethods of Digging, Pici<ing, Carting and Loading 
on Freight Cars. 



17 

representing 2,01 1 cars, containing- 203,000' packages of potatoes, 
vegetables and fruit. It was soon found that $7,000 was not 
sufficient with which to do business, so the Board of Directors 
gave themselves as security for money borrowed to carry on 
their business. This made possible cash transactions, which they 
deemed the only satisfactory method of doing business. 

Since the potato dealers could no longer manipulate the price 
of potatoes in the area where the Exchange was operating, they 
went to the adj,acent territory of Prospect Plains, Cranbury, 
Hightstown, Plainsboro, Princeton Junction, Lawrence Station, 
Robbinsville and all the adjacent territory and bought potatoes 
cheaper than was possible from the Exchange. As this was 
derfogatory to the Exchange sales, this territory was equipped 
with scales and offices at the different stations until the whole 
potato area was covered by the Exchange. This gave the organ- 
ization control of the whole area and it was no longer at the 
mercy of the buyers. 

The Exchange is in touch with all the markets through tele- 
phone and telegraph. During the potato^ harvesting season the 
services of a telegraph operator, stationed in the central offices, 
m secured and direct communication is kept up with the markets. 
By this means the managers are able tO' locate the best markets. 
When we consider that the Monmouth County Farmers' Ex- 
change sells potatoes to almost every state in, the United States 
and ships to Europe, as well, it would appear as though it is 
handling the marketing problem in a very able manner. 

The method employed is to sell the potatoes throughout the 
day, and at night tO' average the price for the American Giants 
and for the round stock such as Cobblers, Norcross and Gold 
Coin. The round stock is handled as a separate class from the 
long stock. The farmer gets the average price of the day's sales 
less the cost of selling. In this way the farmer gets the market 
value of his product. Yet the fact that the farmer does not 
know what he will get for his potatoes when he hauls; themi to 
the railroad, has a tendency to keep himi from being loyal to the 
organization, for he usually wants to know exactly what he will 
get for his crop. As a rule, the farmers do not grade the potatoes 
SO' that they can be sold as different brands, but it is the hope of 
the Exchange that it can eventually have the farmers adopt some 
system whereby uniform grading can be accomplished, and spe- 
cific brands put on the market. 

Most sales are made by draft, bill of lading attached. The 
Exchange regulates the rate of digging by informing the farmers 
whenever the market is becoming overloaded. This prevents a 
2 EX 



i8 

glut on the market and keeps the prices at a more uniform level. 
The manager of the Exchange can tell 24 to 48 hours in ad- 
vance by the tone of buying when there will be a break in the 
market. Thus he can warn the fanners not to dig for a few 
days, when it may be expected the market will again be strength- 
ened. Again, at times when the weather is too hot to dig in 
order to get the potatoes on the market in good condition, it is 
necessary to delay harvesting until it becomes cooler. 

The Monmouth County Farmers' Exchange not only sells 
potatoes, some fruit and vegetables, but it keeps its capital, equip- 
ment and officers working the year round by acting as a purchas- 
ing agent for the farmers. About the most important article pur- 
chased is fertilizer. In 191 5 the Exchange sold over 7,ock) jjpns 
to its members. Three warehouses have been erected in the 
territor}^ for mixing and storing the goods until it is distributed. 
The customers not only know the analysis but also what is used 
to make up the analysis of the brand. For the year of 19 16 two 
formulas were used, one with and one without potash, as follows : 

No. I. 



4-10-2. 




150 lbs. 


nitrate of soda. 


120 " 


sulphate of ammonia 


30 " 


blood. 


280 " 


tankage. 


100 " 


bone. 


80 " 


potash. 


[240 " 


acid phosphate. 




No. 2. 


4-10-0. 




150 lbs 


nitrate of soda. 


100 " 


sulphate of ammonia 


30 " 


blood. 


350 " 


tankage. 


100 " 


bone. 


[270 " 


acid phosphate. 



For 191 5 sufficient potash was obtained for a 5 per cent, 
mixture, but this year only sufficient to make one brand 2 per 
cent, potash could be secured. When potash is sold at a normal 
price the usual potato brand used is a 4-8-10 mixture, instead 
of a 4-iot-2 brand. To these potato growers who usually ap- 
ply about 1,500 pounds of fertilizer on each acre of potatoes, 
this is a great litem of expense, as well as of much importance 
to the successful culture of the crop. In addition to the pur- 
chasing of fertilizer, the Exchange buys the major portion of, 
the seed potatoes for its members. These are obtained from 
New York State and Aroostook County, Maine. In order that 



19 

the best seed free from disease be secured, the inspector of the 
Exchange visits the field from which the potatoes come, to see 
if they grow true tO' type, are vigorous and free from disease. 
Two inspections are ordinarily made, one during the growing 
season and one at the time of digging. This enables the mem- 
bers to obtain a higher quality of seed and one more free from 
disease than if they were dependent upon the seed dealers, who 
would 'not have the same means oi inspection. All sales are 
made on cash basis or a well-secured note. 

The paid-in capital stock of the Exchange is $75,400 com- 
posed of shares the par value of which is $5.00 each. The 
stockholders are allowed one vote for each share held. No 
more stock will be sold, but'participating membership can be 
obtained by paying a $5.00 membership fee. The total mem- 
bership at present is about 1,400. 

The business has grown from 203,000 packages, valued at 
$454,414.11, in 1908, to 986,594 packages, valued at $1,254,- 
613.49, in 19 1 5. This is a wonderful development, and a record 
of service of which any organization might be proud. At the 
present time it is estimated that the Exchange handles half of 
the total output of potatoes in the county. Any organization 
which can handle so efficiently a bulky product such as potatoes 
and fertilizer at so small a cost as 2 J^ per cent, deserves much 
commendation. Should the farmers all use this Exchange to 
market and buy their products, this percentage cost could be 
still more decreased. However, the amount of business and 
influence of the organization is. steadily increasing, and it is only 
a matter of time until all the farmers will recognize its merits 
more fully. The success of the Monmouth County Farmers' 
Exchange is due largely to the men who' are its officials. The 
character and caliber of the men at the head of the organization 
is displayed by the fact that during the first year the Board of 
Directors and officials met over forty times without any pay, 
and even at their own expense. The men at the head of the 
organization are composed of the most stable and influential 
men of the county. The president of the Exchange, Mr. H. 
V. M. Dennis, who has served gince it was organized, has given 
much time and thought to the work in order that it should be 
made a full success. Thus through the loyality and ability of 
the officers and members it has been made an example of the 
great possibilities to be obtained through co-operative buying 
and selling when farmers will unite for a common purpose and 
remain loyal to that purpose. 



20 

EXPLANATION OF TERMS AND METHODS USED 

The reader should thoroughly familiarize himself with the 
following terms before reading the remainder of this publicatiom : 

Owner. — The temi "owner" is applied to the person who 
operates the farm he owns. 

Part Ozvner. — The term "part owner" is applied to the person 
who owns the farm, rents additional land, aiid operates both 
that which he owns and rents. 

Landlord. — The landlord is a person who owns a farm and 
leases it to another. 

Tenant. — The tenant is the person who leases the land from 
the landlord. 

Share Tenant. — The term "share tenant" is applied to the 
person who leases a farm for a share of the crops and stock 
receipts, usually one-half, and furnishes the working tools, 
equipment, work stock, and ordinarily half of the productive 
stock. 

Cash Tenant. — This is the term applied to the tenant who 
leases the land for a stipulated cash sum, furnishes all his stock 
and working equipment, and obtains all the receipts. 

Labor-Share Tenant. — This term is applied to the tenant who 
furnishes no equipment or capital, all of which is furnished by 
the landlord, the tenant usually receiving one-third of the crop 
and stock receipts. 

Farm Capital. — Farm capital includes all money invested to 
carry on the farm business. It is the amount of money invested 
in land, building, machinery, stock, supplies and cash necessary 
to conduct the farm operations. It does not include house fur- 
nishings. The capital invested is the average of the values for 
the beginning and the end of the year. 

Farm Receipts. — Farm receipts include all money received 
from the sale of crops, stock, stock products, miscellaneous 
sources, such as outside labor, and increase of inventory, if any 
increase occurs. 

Farm F^-penses. — Farm expenses include all money paid out 
to conduct the farming business. This embraces such expenses as 
board furnished, seed, fertilizers, taxes, insurance, buildings, im- 
provement, equipment, and decrease of inventory, if any. It 
does not include expenses for the household. 

Farin Income. — Farm income is the term applied to the total 
farmi receipts less the total farm expenses. It is what the 
farmer has earned with his own labor and capital invested in 
his farm business. 

Labor Income. — By "labor income" is meant the farm in- 



21 

come less 5 per cent, interest allowed for the use of the capital 
invested in the farm business. Thus it is equal to the total re- 
ceipts, less the total expenses and 5 per cent, of the average 
capital invested. In addition to this the farmer has a house to 
live in and products for household use, such as garden vegetables, 
fruit, butter, milk, eggs, meat and various other articles obtained 
from the farm. It then represents what the farmer has for his 
time and labor for the year on the farm exclusive of the value 
O'f his house (as his dwelling) and farm prodiActs for household 
use. 

Work Unit. — A work unit for horse or man represents a day's 
work. Ordinarily, farm operations require a certain number of 
days' work, or work units. 'Should it take one farmer longer 
to do the same amount oi work than another, he is not as efifi- 
cient in the use of his labor. Work units may be used to measure 
the efficiency of both men and horses. 

Animal \Unit — An animal unit represents a cow, a horse, or its 
equivalent in the amount of feed required and manure produced. 

Farm. — A farnii in the sense used here represents all the land 
operated by one operator and from one center. 

METHODS OF CALCULATING RESULTS 

All conclusions are drawn f roin the results shown by a number 
of farms, selected for a certain factor or character common to 
all of the number. The work is mOre representative if a large 
number of farms are used in obtaining the figures with which to 
draw the conclusions. Usually other factors influencing results 
are sufficiently distributed to make the. particular factor isolated, 
the only one to influence the profits or loss of the farms. Never- 
theless, it is essential that the calculator be careful that other 
factors may not be soi correlated as to influence the work. This 
can readily be ascertained by careful observation of the records, 
and averaging factors such as size, capital, production, distance 
from the railroad station and others of importance. When these 
other influencing factors are the same for all the divisions made 
of the records, then conclusions arrived at can be relied upon for 
their accuracy.^ 



^ For example, if we wish to study the effect of size on labor income we 
might take 40, farms alike in yield per acre, distance from the railroad, and 
with the same amount of capital when they are averaged. But 20 of these 
farms are between 50 and 7s acres, averaging 62'^ acres, and 20 farms are 
from 75.1 to 100 acres in size, with an average of 87 acres. Then size is the 
only factor influencing the returns for each 20 farms, for all the other factors 
are alike, or nearly so. By getting the average labor income for each class 
of these twenty farms we would have the effect that size has upon profitable 
potato production. All other factors are eliminated since they average alike. 



22 



DEPRECIATION 

All industries must allow a certain amount for depreciation. 
This can be charged up as an expense against the year's business. 
For some industries this has been definitely worked out so that a 
standard rate may be charged. Unfortunately, arbitrary rates 
of depreciation cannot be charged against individual farms, differ- 
ent types of farms, or farms in different localities. Depreciation 
in live stock is obtained by taking their value at the beginning and 
at the end of the year. Depreciation of machinery was obtained 
for these farms by taking the total cash expense for the ma- 
chinery repair. This was added to the cost of new machinery 
purchased, and the sum divided by the machinery value. 
This gave a rate of ii per cent, to be charged against each 
potato farm for cost and depreciation in the use of machinery, 
Wliile this method may not be applicable to a small number of 
farms or for extension work, it is quite accurate for investiga- 
tional work, where a large number of farms are used. For all 
these potato farms a charge of ii per cent, of the machinery 
value was made as a farm expense for the year. This same 
method could be used to determine the building depreciation, 
but farmers do more repairing of their buildings with their own 
farm labor. Therefore, the figure obtained by this method for 
depreciation on buildings may be low, as the direct cash expense 
does not always represent the total repairs made on the buildings. 
Probably as just an estimation as possible of depreciation of 
buildings can be obtained by the same method as that used to 
determine machinery depreciation, but the figure obtained cannot 
be considered the true rate of building depreciation. However, 
this method can be used toi determine a uniform rate to be 
charged for depreciation of buildings. These methods eliminate 
all estimation as to what depreciation is or would be. They are 
figures obtained from expense actually incurred and not estimated. 
For the owner farms the rate of building depreciation as deter- 
mined was 3.6 per cent., and for the tenant farms 2.9 per cent., 
or an average O'f 3.3 per cent, for all the farms. 

FAMILY LABOR 

All family labor other than that of the operatorl is charged 
as part of the current expense. A farmer, who has two or 
three sons at home, each of whom takes the place of a man, will 
often have a cash surplus to put in the bank, but if he were com- 
pelled to hire and pay for the labor done by his sons, he would 
not have a surplus of cash at the end of the year. 



23 



WHAT CONSTITUTES A POTATO FARM 

All farms with fifty per cent, or more of the total receipts from 
potatoes were designated as potato farms. While this is an 
arbitrary method of separation there were not very many farms 
on the border line. Since fifty per cent, or more of the receipts 
of these farms are from potatoes, this crop is unquestionably the 
dominating influence. In this report only potato farms so classi- 
fied are included. From the whole county 370 potato farms 
were included out of the total number of 1,189. Oi these 370 
potato farms, 194 were operated by owners of the farms, 156 
by tenants and 20 by part owners, or men owning a farm and 
renting additional land. 



SURVEY RESULTS OF SPECIALIZED FARMING COMPARED WITH 
THOSE OF GENERAL FARMING 

There is always danger of drawing too definite conclusions 
from: results of one farm year. This is true in regions where 
staple crops are grown and general farming is followed. It is 
not uncommon for one year to be more prosperous than usual 
and give greater returns to the farmer because of better climiatic 
conditions, or high prices obtained for a certain article. The 
reverse may occur and the farmers could have an off year which 
would not be representative of their normal returns in other 
years. This flu|,ctuation of seasonal and market conditions is 
far more severe for a specialized type of farming than for the 
more staple types. The total crop yield is more severely affected 
by climatic or seasonal conditions and the markets are more easily 
affected by over or under production. Therefore, much care 
should be used in selecting what appears to have been a normal 
year. • Still better results would be reached if successive surveys 
were made for three or more years of the same farms. A 
farmer is in the business for a lifetime and conclusions drawn 
from: an abnormal year's return may not be at all representative 
of his usual income. Therefore, survey results may be quite 
misleading if they are not made at the proper time. Misleading 
results are much more liable to be obtained from a specialized 
type of farming than from general types including dairying,, 
raising live stock and the staple crops such as hay and grain.. 
The year of 1914 was considered a normal year by the potato- 
growers of Monmouth County, New Jersey. By comparing the 



24 

prices of potatoes in the county for the last seven years, we find 
the year of 1914 is normal for that period. 

The following; is the average price paid for potatoes by the 
Monmouth County Farmers' Exchange for 191 4, the year in 
which this survey was made, and the two previous years, with the 
average for the last seven consecutive years, up to and including 
1914. 

Table IV. — Price of Potatoes per Barrel Paid by the Monmouth County 
Farmers' Exchange. 

Price 
Year. per Barrel. 

1912 $1.32y3 

1913, 1.58 

1914 1.42 

Average ^Htf- 

AVERAGE FOR SEVEN YEARS UP TO AND INCLUDING 1914, $1.42 

The average price paid by the Exchange in 1914 was^se cen^ 
below the average for the three years, and the exact average 
paid by the Exchange for the last seven consecutive years. 
Since the yield was considered a normal one for the region, and 
the price was the average of the last seven years, the results in 
this publication should be quite representative of normal returns 
to be expected in potato growing for this region. Duplication 
of the work for the six preceding years would not have altered 
results to any material extent. The year 191 5 would show quite 
different results, for the yield was above the average, and prices 
were much below those of normal conditions. Again, the cost of 
fertihzer for 191 5 was abnormal, due to the shortage of potash. 

LAND TENURE 

RELATION OF TENURE TO LABOR INCOME 

Table V. — Profits Derived by Different Forms of Tenure from 370 Potato 
Farms in Monmouth County, New Jersey. 

No. of 

Land Tenure. Farms. 

Owners, 194 

Part Owners 20 

Share Tenants 132 

Cash Tenants, 15 

Labor-Share Tenants, 7 

Gash and Share Tenants, 2 

Average $842 

The average labor income for these 370' potato farms is $842 
per farm. This is one of the highest labor incomes found in any 



Farm 


Labor 


Income. 


Income, 


$1,801 


$917 


1,635 


801 


903 


739 


1,102 


938 


766 


726 


488 


411 



25 

survey made up to the present time. When the large number of 
the farms is taken into consideration, it is the highest of any 
locahty yet reported. Though surveys made in Indiana, Illinois 
and Iowa show a slightly higher labor income for the 370 tenant 
farms, the owners of this region are far below. ^ With the 
exception of the cash tenants, the owners are making the highest 
labor income of all classes of land tenure. The part owners 
rank second, the share tenants third, the labor-share tenants 
fourth, and the cash and share tenants fifth. This is a logical 
sequence and probably the correct relation of labor income to 
land tenure. The cash tenants are making a somewhat higher 
income than any other class, due largely to the fact that their 
cash rents are low compared with the amount they would be 
compelled to pay should they share receipts. 

Though the owners make only $178 more labor income, they 
have far more money to spend for improvements, education and 
luxuries than the tenants. The amount actually left over expenses 
upon which to live is shown under farm income. ^ The owners 
have the extra returns from their capital, additional to their labor 
income. Thus the farm income of the owners is $898 greater 
than that of the share renters. Therefore, for every dollar the 
share renter can spend the owner can spend about two. The 
farm income of the owners exceeds that of the part owners by 
$166, of the cash tenants by $699, of the labor share tenants by 
$1,035, 3-^^d of the cash and share tenants, $1,313. In addition 
to this farm income all these farmers receive from $400 to $600 
contributed to their living from the farm. This amount repre- 
sents their house rent, garden vegetables, meat, milk, butter, 
eggs, fruit and miscellaneous articles furnished by the farm. 

When comparing the labor incomes of these farms according to 
the form' of land tenure, they appear to bear the proper relation 
with all excepting the cash renters. These are returning the 
landlord less than 5 per cent, interest on his investment. This 
low rate allows the cash renters a higher labor income than 
would otherwise be possible. However, under normal conditions 
it is proper that owners should receive a larger labor income than 
tenants or part owners. Otherwise, it might be more profitable 
for them to sell their farms, invest their money in 5 per cent, 
bonds and become tenant farmers. Nevertheless, conditions in 
some parts of the United States are such that the tenants are 



'U. S. Dept. Agr. Bui. 41. 

^ Farm income is the amount the farmer has to live upon from his farm 
when his farm property is free of mortgage or debt. 



26 

making- far higher labor incomes than the owners.^ When land 
values rise to such a degree, they are excessive, and are not 
based on production but rather on speculation. It thus appears 
that land values in Monmouth County are normal and have 
not gone above their production values. This is a very desirable 
condition for a farming community and one that should be 
maintained. It is well that owners should receive a somewhat 
higher labor income than tenants, in order to afford a greater 
stimulus for tenants to become owners. 



RELATION OF TENURE ON THE POTATO FARMS TO TENURE IN 
THE COUNTY AND STATE 

Table VI. — Number of Owners Operating Farms Compared with Number 



Form of 
Tenure. 


State of 
New Jersey. 
24,133 


of Tenants, 

Per Monmouth 
Cent. County. 
72.1 2,179 
24.8 630 


Per 
Cent. 
74.1 
21.4 


Mon. Co. 
Potato 
Farms. 

194 

156 


Per 
Cent. 

55 


Tenants, 


8,299 


45 



This comparison is quite striking for it shows that on these 
potato farms there is a very high percentage of tenancy com- 
pared with that of the county or State. This condition is pro'b- 
ably due to a number of factors and not to any one alone. In 
the first place, land values have increased more rapidly throughout 
this potato area than in surrounding portions of the State. This" 
helps to make it more difficult for a young man to purchase a 
farm since far more capital is required than for many other types 
of farming. In many farming regions where the proportion of 
tenancy is high, the condition is due to speculation. In this potato 
area such is not the case. These farms are to a large degree 
owned by old families of the community, many of whom have re- 
tired to- town and rented their farms to a tenant. This large 
proportion of tenancy can be attributed largely to 'the productive- 
ness of the farmis. When a region is occupied with farms that 
return a farm income of approximately $2,000 for the average 
farm it is quite possible for a large number of the owners to 
retire with a moderate amount of accumiulated capital, which 
thereafter, with the income from their farm occupied by a tenant, 
will provide for a comfortable living. Also, there are but few 
farms in this area for sale. Hence, in view of all the prevailing 
conditions, the large proportion of tenant farmis must be attri- 
buted to the large farm income and the difficulty of purchasing" 
from these old residents, many of whom are now living in town 
as retired farmers. 



^U. S. Dept. Agr. Bui. No. 41. 



27 

The tenants receive over twice as much as their hired men 
and have in addition more independent living conditions. Thus, 
this status of land tenure is an outgrowth of local conditions and 
not a criterion of speculation as it exists in some parts of the 
United States. 

RELATION OF TENURE TO PER CENT. RETURNED TO THE OWNER 

Table VII. — Returns to the Landlord on Farms Occupied by Tenants or 
Percent. Received by Landlord on His Investment. 

Per Cent. 

Labor Income On Investment 

Tenure. Operator. by Owner of Land. 

Owner i .". ' $917 10.2 

Part Owner SOI 7.7 

Share Tenants, 739 8..S 

Cash Tenants 938 3.0 

Labor-Share Tenants, 726 9.5 

• The return to the landlord is highest when he furnishes all 
the capital to conduct his farm and allows the tenant a share, 
which is usually one-third, for his labor furnished. The second 
highest return to the landlord is obtained by share renting, the 
third highest return is obtained by the landlords who are renting 
to owners of farms, while the smallest return is obtained by the 
landlords who rent for cash. From the standpoint of the tenant, 
if he is an able farmer, he had better rent for cash, when pos- 
sible. However, should he be a beginner or a man not well skilled 
in farming he had better share rent in order to have the advice, 
counsel and supervision of landlord to help him in his farming 
operations. The tenant should expect to pay a higher rental 
when he can depend upon the landlord for advice and capital. 
The labor-share tenants get still a smaller proportion, though the 
number of labor-share and cash tenants from which tO' draw con- 
clusions is small. This is a logical return for both the tenant and 
landlord. The less capital and risk the tenant has, the less is his 
labor income and the greater the percentage returned to the land- 
lord. The major portion of all these farms are share rented, 
a condition which indicates that the landlord recognizes the 
advantages of share renting. In addition, the landlord can 
maintain a more active interest in the farm, keep the buildings and 
fences in proper shape, direct to a limited extent the cropping 
and fertilization, and prevent deterioration of his tenant farm 
which so frequently occurs under tenant conditions. But due to 
the fact that most of these tenant farms are owned by the former 
occupants, they maintain a more active interest in the welfare of 
both the tenant and the farm. These facts are substantiated by 



28 

the appearance of the region, for it is difficult to find a more 
prosperous looking area than this potato locality. Both tenant 
and owner farms are well equipped, provided with good buildings 
with the fields carefully tilled (see figs. 4 to 6). 

Tenancy with these potato farms is an outcome of prosperity 
and does not indicate a backward step in the community, since 
both the landlord and the tenant are interested in their local con- 
ditions. Good roads, schools, churches and other community im^ 
provements are abundant, showing that this system of tenancy 
is an apparent success. If these farms were held for speculation, 
such improvements would not be so easily obtained. 



Table VIII. — Number and Per Cent, of Landlords Receiving a Given Per 
Cent, on Their Investment on 154 Potato Farms. 

Per Cent, 

Received hy 
Landlord. 

2% or less, 

2.1 to 4, 

4.1 to 6 

6.1 to 8, 

8.1 to 10, 

10.1 to 12 

12.1 to 14, 

14.1 to 16 

16.1+ 



Share Tenants. 


Labor-Share Tenants. 


Cash Tenants. 


No, Farms. 


Per Cent. 


No. 


Farms. Per Cent. 


No. Farms. 


Per Cent. 


3 


2 




1 




4 


27 . 


7 


5 








7 


45 


31 


24 




1 '. 




2 


14 


30 


23 




1 




1 


7 


23 


18 




1 




1 


7 


12 


9 




1 








12 


9 




1 








7 


5 




1 








7 


5 













One-third of all the landlords who share-rent their farms re- 
ceive less than 6 per cent, on their money invested, two-fifths 
receive from 6 to 10 per cent., while the remainder, which is 
almost one-third, receive 10 per cent, or more for their capital 
invested. A few receive as much as 25 per cent., a very high 
return. There are not enough labor-share farms from which to 
draw conclusions; while the cash-rented farms, though few in 
number, show very consistently that there is no' such wide dif- 
ference in returns to the landlord. 

It is quite evident from these results that the system of share 
renting is far too arbitrary. A potato farm situated four miles 
from the railroad should rent for less than one close to the rail- 
road, because of the increased cost of hauling fertilizer and 
potatoes from the former. Again, a small farm cannot be as 
economically cultivated as a large one. This should be con- 
sidered by a tenant when renting. Fields may be misshapen, 
hard to till or less fertile, all of which factors should be given 
more careful consideration in renting a farm. These things 
should be adjusted so that both the land and the tenant 
should receive their proper share from the farm. This would 
then give more just returns to both the tenant and the 
landlord. There are cases where the tenant receives more than 



29 

he should. The cash tenant appears tO' have the better oppor- 
tunity to obtain his just portion of the receipts. The range of 
returns to the landlord on the cash-rented farms is far more 
uniform than on the share-rented farms. It appears that greater 
care is exercised in renting a fann by cash than through share 
rent. The cash-rented farms are leased at their production 
values more frequently, so that factors such as fertility, soil, 
buildings and distance from the railroad are given more careful 
consideration. The most usual custom for share-rented farms 
is for the landlord to furnish the farm with one-half of the seed 
and one-half of the fertilizers, pay the farm taxes, and pay for 
building and fence repairs. In return the landlord gets one- 
half of all the receipts. Thb share is ordinarily the same re- 
gardless of the distance from the railroad, fertility of the farm, 
condition of buildings, and like conditions that affect the returns 
and cost of farm' operations. The landlords as a class do not 
receive excesive returns, but some individuals do obtain more 
than their share. The cash landlords appear to be receiving less 
than they should, since money can be made tO' return over 3 per 
cent, if placed in a savings bank. When the landlord's retui-ns 
are less than what could be obtained on a farm mortgage, they 
may be considered as being too low. These cash renters have 
unusually good bargains. However, the number is too few from 
which to draw far-reaching conclusions. 

RELATION OF TENURE TO SUCCESS 

Table IX. — Variation of Labor Income on 363 Potato Farms in iVlonmouth 
County, New Jersey. 

, Owners. , , — Tenants , Part Owners. , Total. , 

No. of Per No. of Per No. of Per No, of Per 

Labor Income. Farms. Cent. Farms. Cent. Farms. Cent. Farms. Cent. 

Less than ifi; 39 21.0 12 8 5 25 m 15 

1 to 400, 33 16.0 39 27 3 15 75 21 

401 to 700, 26 13.0 33 22 2 10 61 16 

701 to 1000 21 11.0 21 14 2 10 44 13 

1001 to 1500, 32 16.0 21 14 3 15 56 15 

1501 to 2000, 13 7.0 11 7 1 5 25 7 

2001 to 2500, 9 5.0 10 7 2 10 21 6 

2501 and over, 21 11.0 2 1 2 10 25 7 

Out of 363 potato farms, which include all but 7 labor-share 
farms, 56 farms, or 15 per cent., have a minus labor income. 
The operators of some of these 56 farms are living on the in- 
terest of their capital, while a few have actually lost money, 
so that receipts are not above expenses. Oue-fifth receive be- 
tween $1 and $400, while 131, or approximately one-third of 
the entire number, receive the same or less than the hired men 
of the community. Not quite one-third, or 105 farms, make 



30 

between $400 and $1,000, while the remainder, or a little over 
one-third of the total number, make over $1,000. By comparing 
these returns with the wages a hired man receives, we find that 
one-third of the total number get no more than the hired men of 
the community, one-third get about twice what the hired men re- 
ceive, while the remaining third get between 4 and 5 times what 
the hired men receive. When comparing the distribution of 
the tenants and owners in these classes, it is quite striking that 
a far larger proportion of the owners are losing money than 
the tenants. Of the total 194 owner farms, 39, or one-fifth, 
have a minus labor income, while of the tenant farms but 12, 
or 8 per cent., of the 149 have a minus labor income. Further- 
more, the average of these losses for the owners is much greater 
than that of the tenants. One owner had a minus labor income 
of $2,057, while the tenants' greatest minus labor income was 
$606. The average of the minus labor incomes of the owners 
who lost money was' $577, while that of the 12 tenants with 
minus labor incomes was but $216. This is to be expected 
since the owners have more capital invested, and therefore 
assume more risk. Poor management or improper organiza- 
tion can lose most where most capital is involved. The tenants 
lose less because they have less capital from which to lose. The 
owners, on the other hand, make the highest labor incomes as 
well as the greatest minus incomes. Of the 194 owners, 43, or 
more than one-fifth, make over $1,500, while of the tenants, 
23, or a trifle above one-seventh, have a labor income of $1,500 
or above. Two tenants make labor incomes above $2,500, while 
21 owners have labor incomes above $2,500. Of these two 
tenants, one made $3,255 and the other $3,257. Both of these 
were on cash-rented farms. The highest labor income made by 
an owner was $10,343. Of the part owners one had a labor 
income of $5,731. It is quite evident that the owners' have the 
best opportunity to make large labor incomes, as well as run 
the risk of losing the most money. The tenant's risk is not so 
great, nor is his opportunity of making a large return for his 
efforts so promising. The part owner stands midway between 
the two in respect to making a large labor income as well as 
risk of losing. The form of tenure does limit the possibilities of 
making, as well as losing, money. A good farmer, with sufficient 
capital, had far better be a farm owner. 



31 



CAPITAL 



Frequently capital is a limiting- factor in farming- operations. 
The averag'e capital of the potato owner farms was $17,673, 
that for the part owners $16,675 ^^^ the share tenants $3,409. 
This includes land, stock, machinery and cash, everything used 
to carry on the farm business. 



RELATION OF CAPITAL TO TENURE AND LABOR INCOME 

Table X. — Variation of Operators' Capita! on 363 Potato Farms in IVIon- 
mouth County, New Jersey. 



Operator's Capital. 



No. of Per 



Tenants.- 



Part Owners. 



$1,000 or less, . 

1,001 to 2,000, 

2,001 to 

3,001 to 

4,001 to 

5,001 to 

7.001 to 10,000, 
10,001 to 15,000, 
15,001 to 20,000, 



3,000, 
4,000, 
5,000, 
7,000, 



5 
5 
11 
21 
46 
43 



20,001 to 30,000 43 

30,001 and over 20 



No. of Per No. of Per 



Farms. Cent. Farms. Cent. Farms. Cent. 



2.6 
2.6 
5.7 
10.8 
23.6 
22.2 
22.2 
10.3 



4 
18 
38 
43 
34 
12 



2.6 
12.1 
25.3 
28.6 
22.7 

8.7 



3 15 

8 40 

4 20 
4 20 



The amount of capital required to do a successful business on 
these farms is hig-h. The fact that so few of the owners have 
less than $10,000 would indicate its importance on these potato 
farms. These farms would be classed among the most highly 
capitalized of those in the State of New Jersey as well as in the 
Middle Atlantic States. So, too, is the tenants' capital hig-h. 
When we consider that very little live stock is kept by the tenant 
except for labor and family use it would appear almost exc^sive, 
but such does not prove to be the case as will be shown later in 
Table XII. 



Table XI. — Relation of Operators' Capital to Labor Income on 363 Potato 
Farms in Monmouth County, New Jersey. 





, Owners. > 


, Tenants > 


, Pad 


Owners. — 


Capital Invested 


No. of 


I.aljor 


No. of 


Labor 


No. of 


Labor 


Per Farm. 


Farms. 


Income, 


Farms. 


Income. 


Farms. 


Income 


$1,000 or less 






4 


$470 






1,001 to 2.000, ... 






18 


447 


i 


$2,162 


2,001 to 3.000. ... 






38 


567 






3,001 to 4.000, ... 


5 


$65 


43 


886 






4.001 to 5,000, ... 


5 


118 


34 


853 






5.001 to 7,000, ... 


11 


320 


12 


1,079 






7,001 to 10,000, ... 


21 


374 






3 


lis 


10,001 to 15,000, ... 


46 


607 






8 


916 


15,001 to 20,000, . . . 


43 


856 






4 


1,736 


20,001 to 30.000, ... 


43 


1,774 






4 


919 


30,001 and over, . . . 


20 


1,250 











32 

On most of these potato fanns the opportunity of making- a 
satisfactory labor income with less than $10,000 would appear 
small. None of the tenants have an investment over $7,000, yet 
these tenants who have between $5,000 and $7,oookmake an aver- 
age of $1,079 labor income, while the owners with the same in- 
vestment make a labor income of only $320, a difference of $759 
in favor of the tenants. Over one-hfth of all the owners have 
too little capital upon which to do efficient business. Apparently, 
there is a tendency for some men to change from tenants to 
owners too quickly. They might better remain tenants until they 
are able to command a larger capital with which to do business. 
The tenants' capital is likewise important, and it would appear 
that a tenant should have about $2,500 before he starts as a share 
or cash tenant and still better $5,000 to $7,000. A young man 
starting out tO' earn a farm in this region had best start as a 
labor-share tenant, then change to cash or share tenant, and last 
to owner. Usually tenants can obtain some borrowed capital 
upon which to start, so that these conditions are not as severe 
on a young man just starting out to farm, as the figures would 
indicate. Again, many of these tenants are sons or relatives of 
the landlord, who is ready to furnish capital to such a tenant. 
A young man reputed for integrity and thrift, can usually obtain 
credit when the money is wanted for a worthy investment. If 
we compare the tenants' capital on these potato farms with that 
of the tenants in Chester County, Pennsylvania,^ a reg-ion O'f 
dairy and general farming, or with that of the tenants in Iowa, 
Illinois and Indiana,^ a region of live stock and general farming, 
we find the Monmouth County potato tenants' capital consider- 
ably higher. When we consider that these farms have a large 
investment of working capital, and that most of this working 
capital is in the form of v\^ork horses, machinery and cash to 
carry on the farm, business, it would appear that they are quite 
efficiently equipped. That the landlords are the source of 
much of the capital needed by tenants is shown by the average 
capital of share and cash tenants. The share tenants have an aver- 
age investment of $3,409, while the cash tenants have only $3,0'5O. 
This is contrary to what is found in most areas, for usually the 
cash tenants require and have a greater amount of capital than 
the share tenants. In the potato region this may be influenced 
by several factors. First, the landlords of the cash tenants 
would not be as much inclined to finance their tenants. Second, 
the amounts of equipment, stock and machinery for cash and 

'U. S. Dept. Agr. Bui. 341. 
'U. S. Dept. Agr. Bui. 41. 



33 

for share tenants are not very different. In many localities the 
share tenant owns only half of the cows and pigs, but here the 
tenants usually own all the stock and ecjuipment, as in the case of 
the cash tenants. These are influencing" factors which would 
have a tendency to equalize more nearly the tenants' investment 
on the cash and share-rented farms. 



Table XII. — Relation of Tenants' and Landlords' Capital on 149 Potato 

Farms Operated by Tenants in Monmoutin County, New Jersey, 

and the Tenants' Labor Income. 









Landlords' 




Tenants' 


Per Cent. 




Tenants' 


Landlords' 


and Ten- 




Average 


Capital 


Tenants' 


Average 


Average 


ants' Total 


No. of 


Labor 


Furnished 


Capital. 


per Farm, 


per Farm. 


jier Farm. 


Farms. 


Income. 


iby Landlord, 


$1,000 or less, . . 


$785 


$5,S25 


$6,710 


4 


$470 


86.8 


1,001 to 2,000,.. 


1,624 


9,498 


11,122 


IS 


447 


So. 3 


2,001 to 3,000,.. 


2,583 


14,353 


16,936 


38 


567 


84.7 


3,001 to 4,000,.. 


3,416 


20,901 


24,317 


43 


886 


85.9 


4,001 to 5,000,.. 


4,442 


21,250 


25,692 


34 


853 


82.7 


^,001 to 7,000, . . 
Average, 


5,764 


23,828 


29,593 


12 


1,121 


80.5 


3,340 


17,767 


21,107 


149 


753 


84.2 



The landlords' capital does not increase as uniformly with that 
of the tenants, as might be expected. It would appear that the 
capital of the tenants and that of the landlords do not always 
have the proper relation, as the relative amount of capital fur- 
nished by each varies. If the tenants' farms were grouped accord- 
ing to the landlords' capital rather than that of the tenants , a 
more uniform labor income increase could be obtained. A very 
^oticeable break in the tenants' labor income is observed in the 
class of $4,442 compared with that of the $3,416 class. The 
tenants of the former class, with a $i,0'26 increase in capital, 
make $33 less labor income than those of the latter class. By 
comparing the capital furnished by the landlord on these two 
classes of farms, we find an increase in farm value of $349 only, 
of the former over the latter. From this it would appear that 
these tenants whO' have an investment of $4,442 do not farmi a 
larger farm than those in the preceding class, or their increased 
operating capital is not met by a corresponding increase on the 
part of the landlords. This may account for the decrease rather 
than an increase in their labor income, above that of the $3,416 
class. The next class with an average investment of $5,719 
make an increase of $584 above the $4,442 men. But their cor- 
responding- landlords have an increase in capital of $1,514 or a 
total farm increase of $2,791. This then brings the tenant a 
marked return, for the landlord helps to furnish this increase in 
capital. 

3 ^x 



34 

The averag-e per cent, of capital furnished by the landlord is 
84.2. The landlords on the lower capitalized farms furnish 
a somewhat greater proportion of the capital than those on the 
hig'hly capitalized farms. However, the difference is not great. 
Probably the difference which does exist is due tO' the higher farm 
acre values of the lower capitalized farms. Comparing' the aver- 
ag-e total capital used on the tenant farms with the total on the 
owner farms, we find it to be $3,434 greater on the tenant farms. 
In other words, the value of the real estate on the tenant farms 
is almost as great as the real estate and working' capital of the 
owners. Thus the tenant farms have almost one-fifth more 
capital invested per farm than the owner farms. 



Table XIII. — Relation of Capital to a Given Labor Income on 194 Potato 
Farms Operated by Owners in Monmouth County, New Jersey. 





f 






Lato? Income, 






^%m 








$1 


$401 


S701 


$1,001 


$1,501 


$2,001 


Total 


No. of 


Less 


to 


to 


to 


to 


to 


to 


an^ 


Capital. 


Farms. 


than $1. 


$400. 


$700. 


$1,000, 


$1,500. 


$2,000. 


$2,500. 


Over, 


>30,001 and over, . , 


20 


3 


3 


2 


2 


3 


2 


1 


4 


20,001 to 30,000, . , 


43 


6 


4 


4 


2 


9 


1 


4 


13 


15.001 to 20,000, . 


43 


7 


3 


S 


6 


11 


3 


3 


2 


10,001 to 15,000,.. 


46 


9 


14 


5 


4 


4 


7 


1 


2 


7,001 to 10,000,., 


21 


3 


7 


4 


5 


2 








5,001 to 7,000,., 


11 


3 


2 


3 


2 


1 








4,001 to 5,000,., 


5 


2 


2 




1 










4,000 or less, . . , 


5 


3 


1 


i 













Percent, of Potato Owner Farms Making a Given Income with a Specified 

Capital. 









$1 


Libor Income. 

$401 $701 


$1,001 


$1,501 


$2,001 


$2,50^ 


Total 


No. of 


Less 


to 


to 


to 


to 


to 


to 


and 


Capital. 


Farms. 


than $1. 


$400. 


$700. 


$1,000, 


$1,500. 


$2,000. 


$2,500. 


Over. 


$30,001 and over, . 


20 


15.0 


15.0 


10.0 


10.0 


15.0 


10.0 


5.0 


20.0 


20,001 to30,0CO,.. 


. 43 


13.9 


9.S 


9.3 


4.6 


20.0 


2.3 


9.8 


30.3 


15.001 to 20,000,.. 


. 43 


16.2 


6.9 


IS. 6 


13.9 


25.5 


61.9 


6.9 


4.6 


10,001 to 15,000,.. 


46 


19.5 


31.7 


10.6 


s.e 


S.6 


15.2 


2.1 


4.1 


7,001 to 10.000,.. 


21 


14.2 


33.2 


19.1 


23.4 


9.6 








5,001 to 7,000,.. 


11 


27.2 


IS.l 


27.2 


IS.l 


9.1 








4,001 to 5,000, . . 


5 


40.0 


40.0 




20.0 










4,000 or less 


5 


60.0 


20.0 


20.0 










... 



This shows a marked relation between capital and the possi- 
bility of making a given labor income. Oi the five farmers whO' 
had a capital of $3,000 to $4,000, one made a labor income as 
high as $551. O'f the five who had $4,000 to $5,000, one ma,de 
$762 by selling his crop in Asbury Park, while four made less 
than $400 labor income on these potato farms. Of the 21 farm- 
ers who had a capital of $7,000 to $10,000, two got a return of a 
little over $1,000 labor income, seven got over $700 labor income, 
while 1 1 got over $400' or more than the hired men receive. Thus 
these data indicate that an owner who has between $7,000 and 



35 

$io,ooo capital has about one chance out of two' in making- 
more than $400 in this region and two chances out of twenty- 
one to make over $1,000. The groupi of farmers who have 
the largest number and proportion of their number making 
hig-h labor incomes we find in the class O'f those with a capital 
between $20,000 and $30,000. Out of a total of 43^ farms, 13 
or almost one-third make a labor income over $2,500, while three 
out of five make over $1,000 labor income. This appears to be 
the most efficiently capitalized farm. A coirimunity of farms, 
all of which are as efficiently equipped as these, would certainly 
need no rural uplift movement. Such a locality would have 
good roads, schools, churches, libraries, and modern homes. 
There would be nO' farm labor problem, and the farmer's son 
and daughter would gladly stay on the farm. Such conditions 
are approaching the ideal, and only a few can hope to reach them. 
However, they serve as a guide toward development of the 
farm and the amount of capital that is moiSt profitable tO' invest. 
Just how this capital should be invested, whether in land, build- 
ings or stock, will be shown la.ter. A farm owner should have at 
least $10,000 to invest, and should he be just starting, he had 
far better borrow $10,0001 more and invest $20,000. From these 
results a $10,000 mortgage would be far easier to pay off on a 
$20,000 farm than a $5,000 mortgage on a $10,0001 farm. To 
anyone who' is considering the purchase of a farm this is of much 
importance. Above $30,0001 capital, the average labor income 
as well as the opportunity of making a high labor income de- 
creases. These twenty farms it is quite evident are too highly 
capitalized. While these farms are conducted for profit, the same 
as those in the class of $20,000 to $30,000 capital, they are 
equipped with costly dwellings, barns and improvements which 
bring no return. However, they are not owned by so-called 
gentlemen farmers, but by men who raise productive crops. It 
is merely the investment in improvements that brings no farm 
income, such as a $7,000 house and others of like nature. 



36 




$300 $4001 $5001 • $7001 $10001 $15001 $20001 $30001 

to to to to to to to and 

4000 5000 7000 10000 15000 20000 30000 over 

CAPIT.'J. IirVESTED F3R FARtI 



Fig. 19. — Relation of Capital to Labor Income on 194 Farms Operated by 
Owners in Monmouth County, New Jersey. 



Z7 



Table XIV. — Relation of Capital to a Given Labor Income on 149 Potato 
Farms Operated by Tenants in IVIonmouth County, New Jersey. 





















i.fol 








$1 


$401 


$701 


$1,001 


$1,501 


$2,001 


J2;4a«- 


Tenants' 


No. of 


Less 


to 


to 


to 


to 


to 


to 


and 


Capital. 


Farms. 


than $1. 


$400. 


$700. 


$1,000. 


$1,500. 


$2,000. 


$2,500. 


Over. 


$1,000 or less, . . . 


4 




2 


1 


1 










1,001 to 2,0<X>, . 


18 


2 


6 


4 


4 


1 


i 






2,001 to 3,000, . 


38 


2 


11 


15 


3 


4 


3 






3,001 to 4,000, . 


43 


4 


11 


5 


5 


S 


4 


6 




4,001 to 5,000, . 


34 


3 


6 


7 


e 


7 


2 


2 


i 


5,001 to 7,000, . 


12 


1 


3 


1 


2 


1 


1 


2 


1 



Per Cent, of Tenant Potato Farms Making a Given Income with a 

fied Capital. 



Speci- 









$1 


$401 


$701 


$1,001 


$1,501 


$2,001 


^m- 


Tenants' 


No. of 


Less 


to_ 


to 


to 


to 


to 


to 


and 


Capital. 


Farms. 


than $1. 


$400. 


$700. 


$1,000. 


$1,500. 


$2,000. 


$2,500. 


Over. 


:$1,000 or less, . .. 


4 




50.0 


25.0 


25.0 










1,001 to 2,000, . . . 


18 


il.l 


33.3 


22.2 


22.2 


5.5 


'5'. 5 






2,001 to 3,000, . . . 


38 


5.2 


28.9 


39.4 


7.S 


10.5 


7.8 






3,001 to 4,000, . . . 


43 


9.3 


25.5 


11.5 


11.5 


18.0 


9.3 


13.9 




4,001 to 5,000, . . . 


34 


8.8 


17.6 


20.6 


17.6 


20.6 


5.8 


5.8 


2^9 


5,001 to 7,000, . . . 


12 


8.3 


25.0 


8.5 


16.6 


S.3 


8.4 


16.6 


8.4 



This shows the same relation for distribution of lal3or incomes 
to a given amount of capital as in the case of the owners. As 
long" as the tenant does not have sufficient capital to operate a 
fair-sized business, he had better rent as a labor-share tenant 
v/here the landlord furnishes all the capital, or work as a hired 
man. From these data it appears that the tenant should not have 
less than $2,000 before he can hope to do much better than the 
hired man. Five to seven thousand dollars is far more desirable, 
and would appear to give a tenant a good opportunity of making 
a good labor income for his 3^ear's work. While this is a large 
amount of capital for a tenant to invest, the returns fully war- 
rant the investment. If the tenant is of good character and a 
good farmer he usually can get considerable capital from the 
landlord to finance his business. When the tenants as a class 
make an average of $753 labor income, they have prosperous 
conditions and an opportunity tO' save money with which to pur- 
chase a farm later. The twelve tenants who have a capital be- 
tween $5,000 and $7,000 made an average labor income of 
$1,079, while five of the twelve made over $1,000. Over one- 
third of those who had a capital between $4,000 and $5,oo0' made 
a labor income of $1 ,000 or more. Thus a tenant farmer should 
have not less than $2,ooO' capital, and much better $5,000 to 
S7,ooo capital invested in his business. This class would compare 
favorably with the owner who' has between $20,000 and $30,000 
invested. 



38 



Table XV. — Return for Each $1,000 Capital invested on 194 Potato Farms 
Operated by Owners in Monmouth County, New Jersey. 

Return Labor Income Per Cent. 
No. of per $1,000 per $1,000 Returned on 
Capital. Farms. Investment. Investment. Investment. 

Loss, 

$3,000 to .$4,000 5 .$33 $17 3.3 

Gain. 

4,001 to .5,000, 5 76 26 7.6 

.=5,001 to 7,<X10 11 103 53 10.3 

7,001 to 10,000 21 94 44 9.4 

10,001 to 1.5,000 4G 98 48 9.8 

15.001 to 20,000, : 43 99 49 9.9 

20,001 to 30,000 43 121 71 12.1 

30,001 and over, .^r . 7 20 85 35 8.5 

The labor income for the owners who have a capital between 
$20,000 and $30,000 is not only greater for these farms, but is 
likewise greater per $i,ooo invested in the farm. When we can 
find a capital that returns a greater net profit to the farmer and at 
the same time gives a greater return per $i,ooo invested, it is 
illustrated very clearly that this amount of capital will provide 
for the most efficient farm unit. A farm income of $121 per 
year for each $1,000 invested in a business is a very satisfactory 
investment. If we deduct $50 for interest at 5 per cent, we have 
left $71 per $1,000 which represents the labor income per $1,000 
for the operator's efforts and management. When farms as a 
class make an average return such as these $20,000 to $30,000 
farms, certainly a very efficient and highly desirable business 
is. provided for. We must conclude from this that $2o,o0o to 
$30,000 will provide for the most efficient potatO' farm in this, 
region, and give the greatest opportunity for the farmer to make 
a larg-e labor income. 



DISTRIBUTION OF CAPITAL ON THE FARM. 

Table XVI. — Distribution of Capital on 194 Potato Farms Operated by 
Owners in Monmouth County, New Jersey. 

Per Cent, 
of Total 
Investment Investment Investment 
Form of Investment, in 194 Farms, per Farm. per Farm, 

Real Estate, $2,744,210 $14,145 80.0 

Live Stock 270.4.55 1,.394 7.9 

Machinery and Tools 164, .320 847 4.8 

Feed, 75,686 390 2.2 

Cash, 174,195 897 5.1 

Total $3,428,866 $17,673 lOO.OO 

The proportion of investment in land is not exceptionally high 
in this region if we compare it with that of other regions in the 
United States where similar surveys have been made. However. 



39 

the proportioin invested in real estate is somewhat higher than 
that found in Chester County, Pennsylvania/ and that in Tomp- 
kins County, New York,^ but not as high as Indiana, Iowa and 
Illinois.^ When we consider that these potato farms possess 
very little live stock, except w^ork horses and a few cows, pigs 
and chickens, much of which is largely for family use, we 
must admit that the proportion of investment in stock is high. 
This investment in live stock is largely in work horses, since 
each farm has an average of about 5^ work horses, with an 
average value of $1/5 per horse, or almost $1,000 invested for 
work horses per farm. The work animals represent 5.2 per cent, 
of the total farm^ investment, allowing only 2.7 per cent, for 
productive live stock, as cO'W's7' chickens, etc. An average farm 
value of $175 for farm work horses indicates a good grade of 
work stock. Potato- farming requires a large amount of hauling, 
while heavy "draught implements, such as the potato diggers, are 
used in the field. This calls for horses of a high grade, that can 
be efficiently used for hauling on the road and heavy operations 
in the field. In their field operations these potato farmers plow 
and cultivate deeply, another process which requires good work 
animals. 

The investment of $847 for machiner)^ per farm is highest for 
any region yet surveyed, but the proportion of investment in 
machinery is not as high as that in many other localities. It 
may appear higli, especially when we are considering a special- 
ized farm, which should not require such an extensive number 
of different machines and implements. Much of this high in- 
vestment is found in potato diggers, planters, sprayers and 
wagons for hauling- the crop. Thus the equipment necessary to 
care for the potato^ crop, when we include all the tillage imple- 
ments with the other articles mentioned, is large. In addition to 
this each farmer usually raises hay, corn and small grain, so 
that he has nearly all the required machinery for general farm- 
ing, and has, in addition, the machinery needed for the potato' 
crop. This type of farming demands efficient equipment. The 
large potato diggers are not onl}^ heavy of draught, but require 
much repair if not in good condition. Poor equipment may 
cause a fatal delay in harvesting the potato crop. Thus the large 
amount of equipment necessary to handle the potato crop makes 
a large investment in machinery necessary. The amount of cash 



' U. S. Dept. Agr. Bui. No. 341. 

= U. S. Dept. Agr. Bui. No. 41. 

' N. Y. Agr. Exp. Sta. Cornell Bui. No. 295. 



40 » 

necessary to operate these farms successfully is large, as one 
would expect. In the spring a large outlay must be made in potato 
seed, fertilizer, and labor for the season. The return on these 
investments is not obtained until the crop is harA^ested; so the 
farmer has the major portion of his income for his year's work 
in the season when potatoes are harvested. The rest of the year 
he must finance his operation from money made on the previous 
potato crop or on borrowed capital. 

Table XVII. — Distribution of Tenants' Capital on Potato Farms Operated 
by Tenants in Monmouth County, New Jersey. 

, 132 Share Tenants — — , , 15 Cash Tenants. , 

Investment Investment 

Form of Investment. Per Farm, Per Cent. Per Farm. Per Cent. 

Keal Estate .... 

Stock- ?1,548 46.0 $1,449 50.0 

Machir.ciy and Tools, 799 23.7 698 20.0 

Feed and Supplies, 337 10.0 826 10.0 

Cash 685 20.3 613 20.0 

Total $3,369 100.0 $3,085 100.0 

Both share and cash tenants have a greater investment in live 
stock than the owners,, but they have a smaller investment in 
machinery, tools, feed, supplies and cash. Inasmuch as the land- 
lord must pay for one-half of the fertilizer and potato seed, we 
would not expect the tenant to have as much cash on hand. 
Further, he appears to invest less in implements and machinery. 
It is quite likely that the tenant has a smaller investment in 
machinery, since the tenants as a class have not been farming 
as long as the owners, and consequently they have not accumu- 
lated so larg-e an amount. It is not uncommon to' find a farm 
equipped with more machinery than is sometimes economical. 

The average investment per farm, when the landlord's capital 
is included with that of the tenants, is $21,107. f'or the 
owner farms the total farm capital is but $17,673. This gives 
the tenant farms an increased capital of 19.5 per cent., or almost 
one-fifth above the owner farms. The tenant farms are thus 
more heavily capitalized, but the average is within the most 
efficiently capitalized class of owner farms, where between 
$20,000 and $30,000 capital is invested. It is also significant 
that the tenant farms, though having a greater average capital 
than the owners, have not reached the point of over-capitaliza- 
tion. The twelve highest capitalized tenant farms having an 
average capital of $29,593 are the most profitable. The tenant 
farms, as a class, are more efficient than those of the owners. 
But it is essential that they be so, otherwise they would be unable 
to support two families, or allow the landlord who previously 



41 

operated the farm, to accumulate sufficient so that he could move 
to town. 

INCREASE IN FARM LAND AND B.UILDING VALUES 

Before finishing the comparison of owner and tenant farms, 
mention should be made of the increase in land values which 
is not shown in the labor income of the owner farms or in the 
per cent, received by the landlord on his investment. 



Table XVIII. — Increase of Land Values as Shown by the United States 

Census, for 1910. 

,— Value Per Acre— > , Increase > 

Locality. 1900. 1910. Amount. Per Cent. 

United States $19.81 $39.60 $19.79 100.0 

New Jersey 57.2.3 84.36 27. la 47.-0 

Monmouth County 73.93 122.53 49.40 65.0 

This is a factor which is not to be overlooked. Farm values 
in the State are increasing rapidly so that the landlords realize 
a fair per cent, on their investment if they get no cash return 
from their farms. While this is not true in every individual 
case, for the State as a whole it is applicable. 



RELATION OF CAPITAL TO RETURN ON THE INVESTMENT 

Table XIX. — Return for Each $1,000 Capital Invested on 184 Potato Farms 

in Monmouth County, New Jersey, Operated by Owners, When 

Increases of Land Values are included. 



No. of 

Capital. Farms. 

.$3,C0O to $4,000 5 

4,001 to 5,000, 5 

5,001 to 7,000, 11 

7,001 to 10,000, 21 

10.001 to 15,000, 46 

15,001 to 20,000 43 

20,001 to 30,000, 43 

30,001 and over, 20 

This makes a very high return to the owners, but the correct 
amount of increase for the individual farm is very difficult to 
obtain, and such data can be handled only collectively. This 
would make an average return to the owners of 16.17 per cent, 
if we estimate their increase of farm acre value to be the same 
as that in Monmouth County between 1900-19 10. Since 19 10 
the rate of increase has, apparently, not been lowered; so 6.5 
per cent, a year would not be too high. 





Increase in 




Cash 


Farm Value 


Total Returns 


Return 


for Countv 


or Per Cent, on 


Per Cent. 


1900 to 1910, 


Investment. 


3.3 


6.5 


9.8 


7.6 


6.5 


14.1 


10.3 


6.5 


16.8 


9.4 


6.5 


15.9 


9.8 


6.0 


16.3 


9.9 


6.5 


16.4 


12.1 


6.5 


18.6 


8.5 


6.5 


15.0 



42 



Table XX. — Return to the Landlord on Farms Occupied by Tenant When 
Increase of Land Values is Added to bi'f Cash Return. 

Per Cent. Cash Per Cent. 

" Tenants' Return to Increase of Per Cent. 

Labor Landlord on Land Values. Total Return 

Tenure. Income. Investment. 1900 to 1910. for Landlord. 

Share Tonant, $739 8.3 6.5 14.8 

Cash Tenant 93S 3.0 6..5 8.5 

Labor-Share Tenant 726 9.5 6.5 16.0 

The landlord and owner alone share in the increase of land 
values. This is a factor which the tenant must recognize. As 
soon as possible it is well for a tenant to purchase in a region 
where land values are increasing in order to get the benefit of 
this increase. It, too, makes a far more attractive investment 
for the landlord. Even though these landlords get no cash 
return from their tenant farms, they get over 6 per cent, for 
their investment on increase of land values alone. Such condi- 
tions cannot continue indefinitely and therefore should not be 
considered as a positive return for an indefinite period. However, 
present indications do show a very prosperous condition in this 
community. Evident^, the farmer is at last getting his share 
of prosperity. Localities such as this, where tenants make an 
average labor income of $753, and owners $917, where landlords 
get 7.8 per cent, cash return on their money invested, and where 
land values are increasing at the rate of 6^ per cent, a year, 
are not frequently encountered in the United States. 

SIZE OF BUSINESS 

The average-sized farm in New Jersey is 76.9 acres, that of 
Monmouth County 70.3 acres, while the average size of the 
potato-owners' farms, included in this survey, is 98.3 acres, of 
which 73 acres are actually in crops. The tenant farms have a 
total of 123.6 acres per farm, of which 86.7 are crop acres. 
The 370 potato farms, taken as a group, have an average of 109.4 
total acreage per farm, O'f which 79.2 were in actual crops. 

RELATION OF SIZE TO LABOR INCOME 

Since the major portion of receipts from these farms is derived 
directly from the crops grown, the number of acres in the farm 
is a good measure of the size of a farmer's business. Practically 
all farms have a certain part of the area which is either per- 
manently or temiporarily not cropped. Therefore, a more true 
measure is the crop acreage rather than the farm acreage. A 



43 

man may have a farm area of 150 acres but crop only 100, while 
his neighbor may have no acres and crop 100. Some farms 
have a large proportion in waste, snch as roads, banks, cuts and 
fences. Though the amount is fairly uniform in some localities, 
it was found to vary considerably on these potato farms, due 
probably to the great variation in soil types. Throughout this 
publication, the size of fann is, therefore, measured in terms of 



labor 




- 




Income 


f-^, 






#2600 








. 


2400 








X 


2200 








^ 


2000 










1800 










1600 




O'TOTERS ^^ 






1400 




^^ 




^.--^^ 


1200 




/ TEITAIITS ^^-^ 






1000 




/ y^ 






800 




/ y^^^ 






600 




y^,"-'''^^''^^ 






400 


__-,^ 


^y^^^^^ 






■■soo 


^-^ 

















170 




20 


50 80 110 


140 




CROP ACHES PER FAHM 







Fig. 20. — Relation of Labor Income to Number of Crop Acres per Farm 
on 343 Potato Farms in iVlonmoutln County, New Jersey. 



crop acres. For any who are considering the purchase of a farm 
in such a locality, the number of crop acres is more important 
than the total farm area. In a dairy or live stock region, this 
would not necessarily be true. Again, in a region of live stock 
and grain farming, the size or amount of the farm business 
depends also upon the amount of live stock kept. 







Average 




Per Cent. 


of 


Number of 


Labor 


Total NumTjer 


Crop Acres. 


Income. 


10 




22.6 


$163 


IS 




41.5 


329 


28 




64.7 


702 


27 




S6.8 


1,239 


14 




118.4 


1,567 


3 




176.0 


2,611 



44 



Table XXI. — Relation of Size of Farm to Labor Income on 194 Potato 
Farms Operated by Owners in IVIonmouth County, New Jersey. 

No. of 
Crop Acres. Farms. 

50 or less 20 

31 to 50 35 

51 to 75, 54 

76 to 100 52 

101 to 150, 27 

151 and over, 6 

The average return per farm, or labor income, increases 
tiniformily with the increase in number of crop acres. It is 
quite apparent that a farm of less than 50 crop acres is too small 
for a satisfactory business on these farms. Out of the total 
number of 194 owners' farms, 55, or over one-fourth, have too 
small an area to allow a profitable business. An owner's farm 
of less than 30 acres is entirely too small. Men on these farms 
had better work as hired men or as tenants on a larger farm.. On 
farms having between 76 to 100 crop acres, a very satisfactory 
return is obtained, while on farms having over 151 crop acres, 
with an average of 176 per farm, the highest return of all the 
groups is obtained. 

The average size of these owners' farms is 73 crop acres, or 
98.3 farm acres. This is a large area, if compared with that of 
other regions, when we consider that potato growing is an 
intensive type of farming which requires m.uch labor per acre. 
These farmers are thus afforded an opportunity to make a good 
labor income. To a large extent, this is a very important factor 
in the success of these farms. In other words, they afford these 
farmers a larger business than is furnished for the average 
farmer in the Middle Atlantic States. When these farms were 
first settled, general farming, including stock raising, was the 
common practice. But as the potato industry developed, general 
farming and stock raising were replaced by potato growing. The 
potato crop requires more labor and returns greater receipts per 
acre. The farmers increased their business by adopting a more 
intensive type of farming. This is a very good illustration of 
a farm community increasing the amount of farm business, 
through a more intensive as well as a more profitable type of 
farming, by increasing the potato acreage. Taken as a class, not 
•only are these farms sufficiently large to make a living for the 
operator, but he is able to save some money after he has provided 
for his family. 



45 



Table XXII. — Relation of Size of Farm to Labor Income on 149 Potato 
Farms Operated by Tenants in iVlonmouth County, New Jersey. 

Owners' 

Per Cent. Labor Income 

No. of of Total Average Labor on Same 

Crop Acres. Farms. Number. Crop Acres. Income. Sized Farms. 

30 or less, 4 2.7 21.8 $346 .$1G3 

31 to .50 12 8.1 41.1 462 329 

51 to 75 33 22.1 63.9 555 702 

76 to 100 62 41.7 87.9 698 1,239 

101 to 150, .■ 33 22.1 118.1 1,099 1,567 

151 and over 5 3.3 176.6 1,478 2,611 

The same relation is shoAvn between size of farm and labor 
income on the tenant farms as on the owner farms. However, 
the extremes are not as great, as on the latter. The tenants on 
small farms make more, while on large farms they make less, 
than owners on areas of the same size. One reason for the 
difference between the labor income of tenants and that of 
owners on the small farms is that a few retired owners live on 
small areas which they farm, but are not entirely dependent on 
them for their living. Again, tenants on small farms do' more 
work off the place in order to be more fully occupied. More- 
over, there are not nearly as large a proportion of the tenants 
who rent small farms as owners who live on- small farms. A 
larger percentage of the tenants rent large farms. This fact is 
another argument that the tenant realizes the value of getting 
a good-sized acreage in order to obtain a good-sized business. 



Table XXIII Relation of Size of Farm to Distribution of Labor Incomes 

on 194 Potato Farms Operated by Owners in IVlonmoutli County, 
New Jersey. 

I ■ Labor Income, » 

$1 $401 $701 $1,001 $1,501 $8,001 $2,501 

No. of Less to to to to to to and 

Crop Acres. Farms, than $1. $400. $700. $1,000. $1,500. $3,000. $2,500. Over. 

.30 or less 20 8 4 4 3 1 

31 to 50 35 10 10 5 4 "2 2 1 1 

51 to 75, 54 9 13 8 6 7 7 1 3 

76 to 100 52 S 3 5 5 15 3 5 8 

101 to 150, 27 4 2 3 3 5 2 2 6 

151 and over, 6 1 1 .. 1 ■• ■• 3 

The Opportunities for making a good labor income are quite 
limited on a small crop area. One man who had 30 crop acres, 
and a labor income between $1,000 and $1,500, retailed his 
potatoes, receiving $2.25 to $3.00 per barrel for his whole crop. 
The three men who had less than thirty acres and made between 
$700 to $1,000 likewise retailed their crop and got a high price 
so as to give them a high return per acre and at the same time 
give them a larger business. However, 8. or two-fifths, of these 
men who had 30 acres or less lost money. It is quite noticea1)le 



46 

that the proportion of men losing money decreases rapidly with 
the increase on the size of the farms. This itself argues well 
for the larger farms. The most desirable size appears to be 

100 or more crop acres. However, a large size does not guaran- 
tee a large labor income. But it does provide one very im- 
portant factor usually necessary for making a good labor income. 
Of the six men who had an average of 176.6 crop acres, 3, or 
one-half, made labor incomes of over $2,500. Of the 27 who 
had an average of 118 acres per farm, 15, or over one-half, 
made labor incomes of $1,000 or more, while 8, or almost one- 
third, made over $2,000. In this same group 4 men lost money. 
Thus we see that while large size does not guarantee large re- 
turns, it makes the possibilities far greater for obtaining them. 

Table XXIV. — Relation of Size of Farms to Distribution of Labor Inconnes 

on 149 Potato Farms Operated by Tenants in Monmouth County, 

New Jersey. 

,. Labor Income, , 

$1 $401 $701 $1,001 $1,501 $2,001 $2,501 

No. of Less to to to to to to and 

Crop Acres. Farms, than $1. $400. $700. $1,000, $1,500. $2,000. $2,500. Over. 

30 or less -t . . o 1 

.•31 to 50, 12 . . 7 2 1 1 1 

51 to 7.5 33 4 9 9 5 5 1 

76 to lOO 62 5 IS 15 6 9 4 5 

101 to 150, 33 3 4 6 6 4 4 4 2 

151 and over, .... 5 .. .. .. 1 2 1 1 

In distribution, the tenant incomes are more bunched than 
are those of the owners. There .is a smaller proportion losing 
money as well as making large incomes. M'oreover, the num- 
ber making large labor incomes increases as the area per farm 
increases. The tenants who farm an average of 118.1 crop 
acres have 14, or almost one-half, making labor incomes over 
$1,000. Those with 176.6 crop acres have 4 out of 5 making 
labor incomes of over $1,000, while those with 30 acres or less 
have none making over $700. Tenants with 63.9 crop acres have 
6 out of 33, or one-fifth, while those with 87.9 crop acres have 
18 out of 62, or about one-third, who make $1,000 or more. 
Farming differs from manufacturing industries in that much 
space is required in order to carry on a satisfactory business. 
Though the size of business can be increased by adopting a more 
intensive type of farming or by increasing production, yet there 
is a narrow limit to which this is applicable. These farmers, as 
a class, have increased their farm business by increasing^ the 
potato acreage and by increasing their potato production. Still 
there are a considerable number who have too small areas for 
carrying on a profitable business. 



47 



RELATION OF SIZE OF FARM TO EFFICIENCY IN FARM 
OPERATIONS. 

The fact that large farms are more profitable than smaller 
ones, is not due entirely to the magnitude or amount of business, 
but there are other factors which enter into the operation of the 
large farm that make it more profitable. The larger potato 
grower does not only grow more potatoes from which he makes 
a profit, but he very frecjuently grows them at less cost per 
bushel than the small grower. There are a number of reasons 
why this is true, one or all of which have a direct bearing upon 
more economical production on the large farm. 



Table XXV. — Relation of Number of Crop Acres to Labor Efficiency of 

Men, Horses, and Machinery on 194 Potato Farms Operated 

by Owners in Monmouth County, New Jersey. 

Crop Acres 

per $100 

Worth of Work Units Work TTnits Crop Acres 

Machinery, per Man. per Horse, per Farm. 

6.7 161.1 65.4 22.6 

6.5 175.5 73.4 41.5 

8.0 218.6 86.0 64.7 

8.5 221.7 87.8 86.8 

11.1 227.6 94.8 118.4 

12.0 292.7 102.0 176.0 

As the size of the farnii increases, more productive work is 
accomplished by man, horse and machinery labor. On the larger 
farms one man cares for 2.4 crop acres to i acre on the smaller 
farms. This means that the larger farms raise their crops at a 
smaller acre cost or bushel cost than do the small farms. The 
number of crop acres per horse on the small farms is 9.1, while 
on the largest farms it is one horse for 17.2 crop acres. On 
the large farms a horse will cultivate and care for almost twice 
as many crop 'acres as on the small farms. 

The machinery likewise is used more economically on the large 
farms, since $100 worth of machinery wall care for 12 crop acres 
while on the small farms it cares for 6.7 crop acres only. By 
measuring this efficiency in the use of man, horse and machinery 
labor in terms of man work units, which is a better and more true 
measure, we find that a man actually accomplishes or raises 1.81 
timies, or about twice, as many acres of potatoes and other crops 
than does a man on a small farm. If a man on a large farm can 
produce 181 bushels of potatoes for every 100 bushels he could 
produce on the small farm by working the same number of days, 
it is quite evident that the large farms are far more economical in 
the use of man labor. The large farms afford more steady and 







Crop 


Crop 




No, of 


Acres 


Acres 


Crop Acres. 


Farms. 


per Man, 


per Horse 


30 or less, . 


20 


17. S 


9.1 


31 to 50. ... 


35 


19.8 


10.7 


51 to 75, ... 


54 


25.4 


12.9 


76 to 100, .. 


52 


27.7 


14.7 


101 to 150, . 


27 


32.6 


16.3 


151 and over. 


6 


42.2 


17.2 



48 



uniform work for their men employed, and at the same time 
men can accomphsh more for the time spent at work. 



CROP ACRES 



CROP ACR^vS PDR MAN 




80 110 
CROP ACRES PER FAKA 



140 



170 



Fig 21.— Relation of Number of Crop Acres to Labor Efficiency of Men, 

Horses and iVlachinery on 194 Farms Operated by Owners 

in iVIonmouth County, New Jersey. 

When measuring the efficiency of horses by work units per 
horse we find the same relation as for man labor ^hough the differ- 
ence is not quite so great. For each acre of potatoes or other 
crops produced by a horse on the small farm, 1.56 or i>4 times 
as many acres, are produced on the larger farms. 



49 



Table XXVI. — Relation of Crop Acres to Labor Efficiency of Man, Horse 
and Machinery Labor on 149 Potato Farms Operated by Ten- 
ants in Monmouth County, New Jersey. 

Crop Acres 

Crop Crop per $100 

No. of Acres Acres Worth of Work TJnits Work Units 

Crop Acres. Farms. per Man. per Horse. Machinery, per Man. per Horse. 

30 or less, 4 15.6 S.7 5.7 152.8 62.3 

31 to 50, 12 23.5 12.3 8.S 190.4 78.3 

51 to 75, 33 20.5 12.4 9.4 241.7 78.6 

76 to 100 62 31.0 15.7 10.4 226.8 90.2 

101 to 150 33 33.5 16.5 11.7 248.7 93.5 

151 and over 5 47.7 20.8 19.5 302.4 113.0 

The same relation is shown for the tenants as for the owners. 
Moreover the extremes are somewhat greater for the tenant than 
for the owner farms. If the two extreme classes are eliminated 
the difference between the tenant a'nd the owner farms is not 
great. Therefore, we may conclude that the tenant's labor effi- 
ciency is affected by si^e to as great a degree as that of the owner. 
As a class the tenants are somewhat more efficient in the employ- 
ment of man, horse and machinery labor, due in part to the fact 
that their farms are to a certain extent larger. However, tenant 
farms are somewhat more efficient than the owner farms. They 
usually have a few more crop acres per man, horse and machine 
labor. This is again shown when man work units are used as a 
measure of work actually done. Monmouth County tenants have 
actually raised more acres of potatoes and other crops per man 
than the owners. This is not surprising since the tenant must 
exert himself more in order to get a return sufficient for his 
living than does the owner. When we consider, therefore, that 
on the larger farms there is accomplished from i^ to 2 times 
as much work per man, horse and $100 worth of machinery 
employed, it is quite evident large farms should be making more 
profitable returns to their owners than small farms. 

RELATION OF SIZE OF FARM TO BUILDINGS 

Whether large or small, a farm needs a dwelling for the family 
to live in, and barns and sheds for farm operations. The small 
farms should have a dwelling almost as large and as well equipped 
as the large farm. Barns and other farm buildings vary in size 
to accommodate the need of the individual farm. However, a 
barn equally well equipped can be built so that the cost per horse 
will be less when it is made to- accommodate 8 horses than if built 
for 4 horses. More acres are farmed per horse on the large 
farms, so that the proportionate acre expense for maintaining 
buildings for horses is less on the large farm than on the small 
4 EX 



farm. Money spent for buildings brings no cash return and 
therefore it should be carefully invested. 

Table XXVII. — Relation of Size of Farm to Buildings and Building Invest- 
ment on 194 Potato Farms Operated by Owners in Monmouth 
County, New Jersey. 







Average 


Per Cent. 




Per Gent, of 




Per Cent. 






Value 


of Total 


Value 


Total Farm 


Value 


of Total 




No. of 


of All 


Real Estate 


of 


Real Estate 


of 


Real Estate 


Crop Acres. 


Farms. 


Buildings. 


Capital. 


Dwelling, 


Capital. 


Barn. 


Capital. 


SO or less 


20 


$2,. 500 


49. S 


$1,655 


33.0 


$845 


16.8 


31 to 50, 


35 


3,766 


43.4 


2,229 


25.7 


1,537 


17.7 


51 to 75, 


54 


4,974 


44.S 


3,063 


22.6 


1,911 


22.2 


76 to lOO 


52 


5,613 


34.4 


3,128 


18.9 


2,485 


15.5 


101 to 150, .... 


27 


6,811 


29.1 


2,833 


12.1 


3,978 


17.0 


151 and over; . . 


6 


6,617 


30.1 


4,367 


20.3 


2,250 


9.8 



Of the total capital on the farm, that which is invested in 
buildings amounts on the average to 35.2' per cent, of the total 
farm investment. According to the 1910 census the building 
i'nvestment for Monmouth County is 35.2 per cent, of the total 
real estate value. For the large potato farms this proportion 
amounts to 30 per cent., or about one-third, while for the small 
farms it is 49 per cent., or about one-half of the total farm real 
estate value. By examining the average values ot the buildings 
on the small and on the large farms, it is apparent that while the 
large farms have a smaller proportion of their capital invested 
in buildings, yet they are far better equipped. The average value 
of the dwellings on the small fanns is but $1,655, while that on 
the large farms is $4,367. This means the farmers on large 
areas are more comfortably housed at a smaller proportionate 
expense. The same relation is true of the barn and sheds, but 
to a lesser degree, since, although a large farm requires more 
barn and shed capacity, this is obtained at a smaller relative cost 
than on the small farms. 



Table XXVIII. — Relation of Size of Farm to Buildings and Building Invest- 
ment on 149 Farms Operated by Tenants in Monmouth County, 
New Jersey. 

Per Cent. 
Value of Total 
of Real Estate 
Crop Acres. Farms. Buildings. Capital. Dwelling. Capital. Barn. Capital. 

30 or less, 4 $1,950 41.5 $1,375 .28.9 $575 12.6 

31 to 50, 12 2,890 37.8 1,750 22.9 1,140 14.9 

51 to 75 33 4,130 30.5 2,448 18.0 1,682 12.5 

76 to 100 62 5,912 32.4 * 3,538 13.9 2,374 18.5 

101 to 150, 33 6,091 26.1 3,106 13.3 2,985 12.8 

151 and over, ... 5 9,300 30.0 4,000 14.1 4,300 15.9 

The same relation exists for the tenant farms, but to a less 
marked degree. The average building investment for the tenant 



Average 


Per Cent. 




Per Cent, of 


Value 


of Total 


Value 


Total 


of All 


Real Estate 


of 


Real Estate 


Buildings. 


Capital. 


Dwelling. 


Capital. 


$1,950 


41.5 


$1,375 


,28.9 


2,890 


37.8 


1,750 


22.9 


4,130 


30.5 


2,448 


18.0 


5,912 


32.4 


• 3,538 


13.9 


6,091 


26.1 


3,106 


13.3 



51 

farms is 30.8 per cent., or somewhat less than the building invest- 
ment on owner farms. The average investment on the owner 
farms for dwellings is $2,932, and bams $2,046, while on the 
tenant farms it is $3,0114 for dwellings and $2,340' for barns. The 
dwelling investment is relatively higher on the owner farms 
while the barn investment is higher on the tenant famis when 
considered from the standpoint of total real estate value. Natur- 
ally landlords would not care to build expensive dwellings to 
accommodate tenants. S'till, the average value of these build- 
ings would tend to show that they do have an investment large 
enough to furnish comfortable living conditions. The propor- 
tionate investment on the small tenant farms is twice the amount 
of that on the large farms. Thus the landlord makes a greater 
saving than the owner since he does not increase the investment 
in the house as rapidly as does the owner with the increase of 
size. However, he does increase the investment of his barns 
more rapidly than does the owner as size of farm increases. It 
is quite evident, therefore, that the owner or tenant can live 
more comfortably and have a better dwelling on the larger-sized 
farm than he could on the small one, while at the same time at a 
smaller proportionate expense or at a lower proportionate* charge 
against the farm for living. This is a factor of much importance 
when we consider that the farmer's place of business is his home. 
From this standpoint farming" differs from manufacturing or 
other commercial industries where a man has his office located 
at his place of business with his home at an entirely different 
•place. The business man thus considers his location from the 
standpoint of successful business operation. The farmer must 
consider it from the standpoint of a home as well as of business. 
It is thus important that the farm be large enough to afford a 
comfortable home without too heavy a charge against the income. 



RELATION OF SIZE OF FARM AND CROP ACRE VALUE 

Small farms frequently sell for more per acre than large farms. 
When we consider that the cost of buildings upon these small 
farms is proportionately greater, it is right that they should 
bring relatively more since the improvements per acre are pro- 
portionately (greater. 



52 



Table XXIX. — Relation of Size of Farm to Farm Value and Crop Acre 

Value on 194 Potato Farms Operated by Owners in Monmoutii 

County, New Jersey. 

Average Crop Farm Per Cent. 

No. of Farm Acre Acre Farm Area 

Crop Acres. Farms. Value. Value. Value. in Crops. 

30 or less 20 $5,015 $223.90 $156.40 70.1 

31 to 50 35 8,671 209.00 157.60 75.3 

51 to 75 54 13,531 209.20 153.60 73.4 

76 to 100, 52 16,298 187.80 133.90 71.1 

101 to 150 27 23,352 197.40 157.90 80.1 

151 and over, 6 21,443 121.80 96.50 79.2 

The total farm value increases with the size, as would be 
expected. However, the value per crop acre decreases as the 
number of crop acres increases. The acre value of the small 
farms is $223.90 per crop acre while that of the larger is $121.80, 
a difference of $102.10 per crop acre in favor of the large farm. 
It is quite evident that farm values are not governed by their 
production values, otherwise the acre value for small farms 
would be less. A small farm might be likened to the first reapers 
placed on the market for the farmer to buy. Compared with 
modern reapers, they were expensive to operate, yet cost con- 
siderably more when purchased. 



Table XXX. — Relation of Size of Farm to Farm Value and Crop Acre 

Value on 149 Potato Farms Operated by Tenants in IVlonmouth 

County, New Jersey. 

Average Crop Farm Per Cent. 

' No. of Farmi Acre Acre Farm Area 

Crop Acres. Farms. Value. Value. Value, in Crops. 

30 or less 4 $4,750 $217.90 $150.80 69.0 

31 to 50, 12 7.6.50 186.10 132.40 73.0 

51 to 75 33 13,545 312.00 143.60 67.7 

76 to 100, 62 18,226 207.50 147.30 71.1 

101 to 150, 33 23,303 197.30 137.50 69.6 

151 and over, 5 27,600 156.30 111.20 70.8 

The relative acre values for the tenant farms is very similar 
to that of the owner farms. However, the crop acre values are 
somewhat higher on the former than on the latter, for farms 
of the same size. When computed on the total farm; acreage, 
there is less difference between the acre values of the large and of 
the small farms. Too frequently farms are valued at .their total 
farm' acreage rather than at their total crop acreage. If the re- 
mainder of the farm can be placed in crops, this method would 
not be at fault. But there is always a certain area which 
cannot be cropped, and this differs much with the individual 
farm. In the case of the owner farms, there is a larger pro- 
portion of waste on the smaller farms. This is to be expected 
since buildings, roads and fences take proportionately more space 



53 

on small areas. This amounts to a difference of almost lo per 
cent, on the owner farms. For the tenant farms, the percentag-e 
of waste area is about the same for all the farms of different 
size. It appears as though the tenant on the large farms is more 
wasteful of land than is the owner. The tenants have an average 
of 70.1 per cent, of their farms in crops while the owners have 
74.5 per cent, cropped. 

RELATION OF SIZE OF FARM TO CROP YIELDS 

It has for a long time been the popular belief that sm,all farms 
are better tilled, more carefully farmed, and, therefore, more 
profitable. In practically all farm surveys this has proved a 
fallacy. However, the former work applied to grain, hay and 
extensive types of farm crops. Should this idea prove true in 
any case, one v/ould expect it to do so in potato farming where 
intensive methods are employed in the production of the crop. 
The following tables show just what effect the size of the farm 
has on the potato yield. 



Table XXXI. — Relation of Size of Farm to Potato Yield on 194 Potato 
Farms Operated by Owners in Monmoutii County, New Jersey. 

Yield of 

Crop Per Cent. Potatoes 

No, of Acres in Crop Acres Barrels 

Crop Acres. Farms, Potatoes, in Potatoes, per Acre. 

30 or less 20 9.4 42 76 

31 to 50 35 16.9 41 81 

51 to 75 54 24.7 38 82 

76 to 100, 52 30.0 34 86 

101 to 150 27 41.8 35 84 

151 and over 6 58.5 33 72 

The average yield of potatoes on the owner farms is 83 bar- 
rels per acre. It appears, as though the size o<i the farm would 
have very little influence on the potato yields. Evidently, the 
growers on the large farms are able to raise as much per acre 
as the men on the smaller areas. In fact, the highest yields were 
obtained from the larger farms though the difference is not 
sufficient to say that the large farms are better yielders. The six 
farms with over 151 crop acres have the lowest yield, 72 barrels 
per acre, while the 20 smallest farms have a yield of 76 barrels 
per acre. This latter may, to some extent, be accounted for by 
the fact that more varieties other than American Giants were 
grown on these small farms. This would influence the average 
yield of this small class unduly. 

The per cent, of crop acres in potatoes decreases uniformly 
as the size of the farm increases. The men of the small areas 



54 

endeavor to increase the size of their business by growing a 
larger proportion of potatoes. 

Table XXXII.— Relation of Size of Farm to Potato Yield , on 149 Potato 
Farms Operated by Tenants in Monmouth County, New Jersey. 

Yield of 

Crop Per Cent. Potatoes 

No, of Acres in Crop Acres Barrels 

Crop Acres. Farms. Potatoes, in Potatoes, per Acre. 

30 or less, 4 6.2 2S.4 80.5 

31 to .50 12 19.7 47.9 84.3 

51 to 75 33 24.5 38.3 82.8 

76 to 100, 62 29.2 33.2 86.1 

100 to 150 33 37.1 31.4 85.6 

151 and over, 5 61.2 34.6 85.1 

The average yield of potatoes on the tenant farms is 84.9 
barrels per acre, or almost 2 barrels more than on the owner 
farms. That the crop acre value is somewhat greater for the 
tenant farms is borne out by the increased production on these 
tenant farms. The proper relation of values appears to be 
established as to their production. The large farms, here again, 
are showing a production a little above the average. It is safe 
to conclude, therefore, that large size, such as prevails in this 
region, does not diminish production. If anything, it has a 
tendency to give increased yields per acre. Like the owners, 
the tenants increase the per cent, of their potato areas as the 
size of farm decreases. For the tenant farms, the average pro- 
portion of crop acres in potatoes amounts to 34.4 per cent, of 
the crop acres, or 29.8 acres of potatoes, while for the owner 
farms this proportion is 36.1 per cent, of the total crop acres, 
or 26y2. acres of potatoes per farm. One might argue that these 
smaller potato' farms were not producing more per acre because 
of lack of proper rotation when such a large proportion of the 
farm is in one crop. More will be said about this later. 

RELATION OF SIZE OF FARM TO RECEIPTS 

In order that a profitable business be secured, it is essential 
that it provide for sufficient receipts so that the proportion o-f 
the income that is left after expenses are deducted will afford 
a satisfactory return for capital and labor invested. 

Table XXXIII. — Relation of Size of Farm to Total Farm Receipts and Crop 

Acre Receipts on 194 Farms Operated by Owners in Monmouth 

County, New Jersey. 











Receipts per 










Total 


Potato 


Acre from Crops 


Stock Re- 


Total Re- 




No. of 


Farm 


Receipts 


Other Than 


ceipts per 


ceipts per 


Crop Acres. 


Farms. 


Receipts. 


per Acre. 


Potatoes, 


Crop Acre, 


Crop Acre. 


30 or less, . . . 


20 


$1..3S3 


$117.70 


$10.10 


$4.90 


$61.20 


31 to 50 


35 


2.519 


113.70 


10.70 


7..50 


60.70 


51 to 75 


54 


3.863 


115.10 


14.30 


5.70 


59.70 


76 to 100, . . . 


52 


5,121 


120.80 


17.40 


5.40 


59.00 


101 to 150, . . . 


27 


6,920 


121.60 


14.80 


4.50 


58.50 


151 and over,. 


6 


8,765 


110.70 


15.50 


2.50 


49.80 



55 

The total farm receipts are over six times as large on the 
large farms as oo the smaller, yet with the exception of the 
last class there is very little difference in the total crop acre re- 
ceipts. There is a tendency for the acre receipts to decrease 
slightly up to the last class, when they decrease considerably. 
It would appear that until farms are quite large they are made 
to produce as much per crop acre for the markets as the small 
farms. This is in view of the fact that the small farms had a 
somewhat greater per cent, of their crop acres in potatoes, which 
is the most proifitable crop. The large farms have more hay, 
rye, wheat and corn to sell since there is more raised than is 
required tO' feed the work stock. The stock receipts appear 
to be about the same per acre for the large and the small farm. 
In many regions the proportion of stock increases on the smaller 
farms, but evidently these potato farms find it more profitable 
to increase their receipts . through a greater percentage of pota- 
toes rather than by keeping more stock. 



Table XXXIV. — Relation of Size of Farm to Operator's Total Farm Re- 
ceipts and Crop Acre Receipts on 149 Farms Operated by Tenants in 
Monmouth County, New Jersey. 











Operators' 










Operators' 


Operators' 


Receipts per 


Operators' 


Operators 






Total 


Potato 


Acre from Crops 


Stock Ke- 


Total Re- 




No. of 


Farm 


Keceipts 


Other Than 


ceipts per 


ceipts per 


Crop Acres. 


Farms. 


Keceipts. 


per Acre. 


Potatoes. 


Crop Acre. 


Crop Acre 


30 or less, . 


-1 


$926.50 


$90.20 


$12.10 


.$4.10 


$42.60 


31 to 50, . 


12 


1,820.30 


72.20 


8.30 


4.00 


44.30 


51 to 75, . 


33 


1,967.90 


60.50 


5.70 


3.20 


30.80 


76 to 100, . 


62 


2,664.60 


63.80 


7.70 


3.50 


30.30 


101 to 150, . 


33 


3,424.90 


63.60 


7.10 


3.90 


28.90 


151 and ovei 


5 


4,760.80 


59.30 


4.90 


2.90 


26.90 



The tenants on the smaller farms are making a relatively 
higher acre return than on the larger farms. This difference is 
far more marked than on the owner farms. On the four small 
tenant farms this is accounted for by the fact that they do 
considerable labor off the farm. Again, their potato receipts 
per acre are high because they sold round stock tO' a special 
market, and thereby obtained higher acre receipts than did the 
tenants on the larger farms. The amount of live-stock receipts 
per crop acre is not quite sO' high as on the owner farms. Evi- 
dently, the tenants feel that there is more profit in potatoes 
than in stock. The four small farms have rather high acre re- 
ceipts for crops other than potatoes. These are obtained largely 
from truck. Aside from that, they do' not vary materially. It 
is quite evident that a large area is necessary to obtain satisfac- 
tory receipts from the farm. Furthermore, this increased size 



56 

as found on these farms, does not decrease the acre receipts 
materially. Surely, then, the larger farms should be the more 
profitable for the individual farmer both in profit per acre and 
profit per farm, within the liinits found in this survey. 

Table XXXV. — Relation of Size of Farm to Landlord's Return on 149 

Potato Farms Operated by Tenants in Monmouth County, 

New Jersey. 

Landlord's 
-. ' No. of Eetum, 

Crop Acres. Acres. Per Cent. 

30 or less, 4 3.2 

31 to 50, 12 9.6 

51 to 75, 33 8.3 

76 to 100 62 8.1 

101 to 150, 33 8.3 

151 and over, 5 8.7 

The size of farms has less effect on the per cent, of returns of 
the landlord than on the returns of the tenant. Evidently, then, 
Jthe landlord does not share in the advantages of the large farms 
to the same extent as does the tenant, since his proportionate 
Teturn is approximately the same regardless of the number of 
rcrop acres. This merely emphasizes the fact that the major 
portion of the savings due to the size oi a farm business is 
largely on the operator's expenses of the farm, such as man, 
Jhorse and machinery labor, which are furnished by the tenant. 
.As long as the landlord can rent his farm satisfactorily, he need 
•not increase the size in order to obtain a greater porportionate 
return for the money invested. 

RELATION OF SIZE TO FARM EXPENSE 

Previous tables were given to show that men, horses and 
equipment do proportionately more work on the large farms. It 
was also illustrated that the building investment was more efficient 
on the larger farms. If this is true, the actual cash expense of 
the large farm operator should be less per acre of crops. The 
following table will show the expense per crop acre as influenced 
by the size of different farms : 

Table XXXVI. — Relation of Size to Farm and Crop Acre Expense on 194 

Potato Farms Operated by Owners in Monmouth County, 

New Jersey. 

Machinery or 
Buildingrs, Equipment,^ 
Interest Interest 
Laljor per Laljor and and Operator's 

Total Acre, Not per Acre, Depre- Depre- Total Cash 
No. of Farm Including Including elation ciation Expense 

Crop Acres. Farms. Expense. Operator, Operator, per Acre, per Acre, per Acre. 

30 or less, 20 $901 $12.7 $28.4 $9.1 $2.4 $40.1 

31 to 50, 35 1,639 13.0 21.8 7.5 2.4 39.8 

51 to 75, 54 2,291 11.4 17.1 6.4 2.0 35.4 

76 to 100, 52 2,817 10.9 15.3 5.4 1.8 32.4 

101 to 150 27 3,808 11.2 14.1 4.8 1.4 32.1 

151 and over 6 5,406 11.0 12.8 3.1 1.3 30.7 

1 Machinery or equipment Includes machinery and tools used on the farm. 



57 

On the small farms an expenditure of $901 gave a return of 
$1,383, while on the large farms an expenditure of $5,406 gave 
a return of $8,765. It is quite essential that a large investment 
be made in order to get a large return. As the investment in- 
creases the returns increase, but more rapidly than do the ex- 
penses. One dollar spent on the small farms brings a return of 
$1.53, while one dollar spent on the large farms brings a return 
of $1.62. Thus the large farm is a more efficient place to invest 
the money. The cash labor per acre is somewhat less than that 
on the smaller farms. The popular idea that the labor cost per 
acre on large farms is so excessive that they are not profitable, 
is not substantiated by these^ results. The small farmers pay 
proportionately more per acre o>i crops than do those on the larger 
areas. This difference might be influenced by the greater pro^- 
portion of potatoes on the small farms, but later data will show 
that this would not influence it materially. When the value of 
the owner's time is included in the labor expense, the acre cost 
for the small farms is over twice that oi the larger ones. The 
depreciation and interest charge against the small farms is almost 
three times that of the larger, indicating the more economical use 
of buildings on the latter. The same is true of the equipment 
charge per acre. This is almost twice as great on the small farms, 
and, like the buildings, decreases uniformly with the increase in 
size. The seed and fertilizer expense is about the same. How- 
ever, the total cash expense per acre is only three-fourths as 
much on the large farms as on the smaller. 

Table XXXVII. — Relation of Size to Farm and Crop Acre Expense on 149 

Potato Farms Operated by Tenants in IVIonmouth County, 

New Jersey. 

Machinery or'- 

Buildings, Equipment, 

Interest Interest 

Laljor per Labor and and Operator's 

Total Acre, Not per Acre, Depre- Depre- Total Cash 

No. of Farm Including Including ciation ciation Expense 

Crop Acres. Farms. Expense. Operator. Operator, per Acre, per Acre, per Acre. 

30 or less 4 $526 $8.7 $25.0 $7.1 $3.7 $24.2 

31 to 50, 12 1,194 8.9 18.2 5.6 2.4 28.2 

51 to 76 33 1,265 8.3 14.5 5.1 2.2 19.2 

76 to 100 62 1,777 9.4 13.5 5.4 1.9 20.2 

101 to 150, 33 2,138 8.9 12.1 4.1 1.7 18.1 

151 and over, 5 3,046 7.4 9.0 3.7 1.1 19.4 

The tenants are making a more economical use of their labor 
than the owners. The average acre charge for cash labor against 
the owner farms is $11.40, while that of the tenants is $8.90. 
This is a charge of $2.50 for the owner farms above that 
of the tenant farms. With the exception of the five largest 
farms there is no material difference in cash labor expense per 



58 

acre for the tenant farms of different size. However, when the 
operator's time is included there is a material difference. The 
building depreciation and interest as well as that of the equip- 
ment is again higher for the small farms. The tenant's total cash 
expenses per acre are greater for the small farms, but the differ- 
ence is not so great as in the case of the owners. For each dollar 
the tenant on the small farm invests he gets in return $1.76, 
while on the large area he gets $1.56 (Table XXXIV). It will 
be noted that- the small tenant is getting considerable revenue 
aside from actual farm income and in that manner has increased 
his receipts per dollar invested on the farm above that on the 
larger area. This then accounts for the apparent discrepancy 
when comparison is made with the statistics of the owner farms. 

The actual cash expense is considerably less on the larger 
areas than on the smaller. On a farm of 100 crop acres, this 
cash expense, due to greater efficiency, would amount to almost 
$1,000 less than if this area were divided into four or five farms. 
For the tenants, this difference would be less since they do not 
pay for the building repairs and depreciation. Besides, the 
tenants are somewhat more efficient in the use of their labor. 
There is still another expense of considerable importance which 
does not show in the cash item, but should be recalled at this 
point. It is the horse-labor expense. Most of the horse feed 
is raised on the farm, and this cost against the farming opera- 
tions does not appear with current cash expenses. On the owner 
farms a horse cared for almost twice, and on the tenant farms 
more than twice, as many crop acres on the large farms as on 
the small farms. Assuming that it costs $150 a year to keep 
a horse, this would be an additional crop acre charge of $5 to> 
$10 per acre for the small farmer, when the horses in this area 
work an average of 15 crop acres. 

It is quite evident, therefore, that a large investment is neces- 
sary to get large returns, and that the larger farms have a 
decided advantage in the use of man, horse and equipment labor 
as well as building expense on these potato farms. The most 
efficient size appears to be 100 or more crop acres. To what 
extent this size could be increased effectually above 100 crop 
acres has not been determined in this area, since no class of farms 
vere found whose income was diminishing because of too great 
size. The largest class had an average of 176 crop acres, and 
these made the largest average income of any class. However, 
it is noticeable that the acre profit is diminishing with this last 
class. Therefore, the greatest efficiency per acre has been reached 



59 

and passed. The maximum acre efficiency appears to have been 
reached between lOO and 150 crop acres. On farms of over 150 
acres, or an average of 176 crop acres, the returns per acre 
diminished rapidly, and that probably is near the maximum size 
for efficient farms in this potato region. 

PRODUCTION 

It is a popular belief that high production is associated with 
profitable production; that the higher the production the larger 
is the profit obtained from the farm. Numerous surveys have 
shown that high production may be made unprofitable when 
carried beyond a certain point. It has also been shown that 
some farmers who have the highest production are not making 
as much money as those who are producing less per acre at a 
smaller cost. There is a point beyond which it is no longer 
profitable to spend more fertilizer or labor per acre. After this 
has been once reached, increased expenditures no longer bring 
profitable returns. Moreover, just what is the profitable amount 
to produce can be ascertained only by careful investigation. 

CROP YIELDS 

Table XXXVIII. — Crop Yields of Monmouth County as Found by the Sur- 
vey for 1914 Compared with the Census Yields for 1909. 

Census Yield Survey Yields per Acre for 1914. 

Crop. per Acre 1909, Owners. Tenants. 

Potatoes, 48. barrels 83.0 barrels 84.7 barrels 

Corn, 44.5 bushels 48.1 bushels 46.1 bushels 

Wheat, 22.2 " 22.7 " 22.3 

Kye, 15.0 " 18.9 " 15.6 " 

Hay 1.34 tons 1.45 tons 1.4 tons 

All of these yields are above the average for the State except 
that of rye, which is a little below the average of the census 
yield of 1909. The yields upon these potato farms are above the 
average of the county, but the difiference is not great excepting 
for potatoes. One might expect greater increase for the other 
crops, but these soils are not well adapted to small grains 
and hay. The residual efifects do help to increase the other 
crop yields, but this residual value is not as great on these light 
soils as it would be on heavier soil. Again, the better portions 
of the farms are kept for the potato crop, and this eliminates 
the more fertile areas for crops other than potatoes whenever a 
rotation of potatoes for the whole farm is not followed. 



6o 



Table XXXIX.— Rainfall of Monmouth County for 1909 and 1914, the 
Census and Survey Years' Rainfall at Freehold. 

May. June. July. Total. 

Year. Inches. Inches. Inches. Inches. 

1909, 1.75 1.82 1.07 4.64 

1914 2.49 3.37 4.92 10.78 

Difference .74 1.55 3.85 6.14 

This may explain the low potato yield obtained by the census 
for 1909. Since rainfall is to a large extent the limiting factor, 
a dry season such as that of 1909 would sharply curtail the 
potato yield. This would probably affect the potatoes more 
severely than the other crops mentioned, since in the remainder 
of the year 1909 there was a good rainfall, and the growing 
season is somewhat different for the other crops; hence, they 
would not be so much affected as the potatoes. 

POTATO YIELDS AND PROFITS 

While the acre production for potatoes on these potato farms 
is high, that of other crops is not correspondingly large. Pota- 
toes are the main crop while the others are merely accessory. 
The fact that these soils are not so well adapted to grain and 
grass crops, and that most attention is devoted to potatoes, does 
not allow such high yields for other crops. 



Table XL. — Relation of Potato Yields to Labor Income on 194 Potato 
Farms Operated by Owners in Monmouth County, New Jersey. 

Number Per Cent. 

Average Yield Per Cent, with Minus with Minus Average 

Yields per per Acre, No. of of Total Lahor Labor Labor 

Acre, Barrels. Barrels. Farms. Number. Income. Income. Income. 

60 or less, . . 54.2 22 11 11 50 $172 

61 to 70 66.1 28 14 10 36 657 

71 to 80 77.3 61 32 13 20 740 

81 to 90 86.5 38 20 2 5 1,091 

91 to 100 98.1 35 18 2 5 1,645 

101 and over, . . 109.0 -10 5 1 10 1,907 

There is a direct correlation or relation between the potato 
yields and labor income. On the first class of farms, with a 
yield of 60 barrels or less and an average of 54.2 barrels per 
acre, the owners are losing money. Eleven per cent., or over 
One-tenth of the whole number, are in this class. It is evident 
that a yield of 54 barrels of potatoes per acre is not sufficient to 
cover the cost of producing them. The men who got between 
60 and 70 barrels, or an average of 66.1 barrels per acre, made 
a little money, though it is not a very large amount when the 
owner's time is deducted. A yield between 54 and 66 barrels 
per acre is the dividing line for the cost of production of the 



6i 

owner farms when potatoes sell at $1.42 per barrel. The men 
who have a yield between 80 and 90, or an average of 86.5 
barrels per acre, which is 3^ barrels above the average for all 
the farms, have a labor income which is likewise a little above 
the average, showing that the returns follow the yield very 
closely. Only ten farms out of the 194 got 100 barrels or more 
per acre. The average of these ten farms was 109 barrels, or 
31 per cent, above the average. The return of these farms, on 
the other hand, was $1,907, or over twice that of the average 
for all the farms. This increased production then is very profit- 
able to the farmer, and brings very high returns for the in- 
creased care and expense. 

The highest yield of any farm was from 29 acres of Giants, 
which produced 121 barrels per acre, and 2 acres of Cobblers, 
producing 112 barrels, or an average for the 31 acres of 120 
barrels. This is an increase of 45.4 per cent, above the farm 
average. In addition to potatoes, this farm had 53^ acres of 
corn, yielding 75 bushels of shelled grain, 5 acres of hay, yield- 
ing 2 tons per acre, and 2 acres of orchard, from which the 
operator got no receipts. Three cows, 60 chickens, 2 pigs and 
3 work horses comprised the total amount of live stock. The 
operator sold $410 worth of products from the cows and chick- 
ens, and received $5,053 for the potatoes and $100 for teaming. 
This was all from 43 5^ crop acres and a farm area of 46 acres. 
The labor income of this farm was $2,169, over twice the aver- 
age. This farmer used 5 barrels of seed potatoes per acre and 
1,800 pounds of 4-8-10 fertilizer, which is about 25 per cent, 
more fertilizer, and ^/lo of a barrel more seed than the average. 
With this extra investment of seed and fertilizer, he got an 
average yield of 45 >< per cent, greater than the average potato 
yield and 46 per cent, greater than the average for all crops. 
It is quite likely that he tilled more thoroughly and carefully 
than his neighbors, but it all proved a good investment. In spite 
of the fact that the farm was small, this farmer made greater 
profits by more careful management and more intensive methods 
than his neighbors on larger areas. 

Table XLI. — Relation of Potato Yields to Labor Income on 149 Potato 
Farms Operated by Tenants in Monmouth County, New Jersey. 











Number 


Per Cent. 






Average Yield 




Per Cent. 


with Minus 


with Minus 


Average 


Yields per 


per Acre, 


No. of 


of Total 


Labor 


Labor 


Labor 


Acre, Barrels. 


Barrels. 


Farms. 


Kumber, 


Income. 


Income. 


Income. 


60 or less, . . 


41.1 


4 


3 


2 


50 


$178 


61 to 70, 


67.7 


22 


14 


4 


14 


339 


71 to SO, 


76.9 


41 


28 


1 


4 


587 


81 to 90 


86.2 


44 


30 


5 


2 


815 


91 to 100 


96.0 


30 


20 







1,066 


101 and over, .. 


106.9 


8 


5 







1,693 



62 

The average yield of the tenant farms is almost 2 barrels per 
acre above that of the owner farms. They have a smaller 
number with yields below 60 barrels per acre, but the same 



liABOR 


$20G0 




1800 


V 


1600 


/ 1 


1400 


0W112RS / / 


1200 


/ / 


1000 


/ / 




/ TENAimK 


800 


— /// 


flOO 


1/ 


400 


1/ 


200 



200 


^"^^^""^""^ 1 


1 1 


A 


bbl3.50 bbls.60 ttls. 70 tbls.SO bblsgO bbls.lOO "bblsHO bbls. 


POTATO YIELD PER ACHE 



Fig. 22. — Relation of Potato Yield to Labor Income on 343 Potato Farms 
in Monmouth County, New Jersey. 



6.3 

proportion above lOO barrels per acre. There is a direct relation 
between the yield and the returns on the tenant farms, as was 
found on the owner farms. The highest yield in the tenant 
group was 114 barrels per acre (34 per cent.), or one-third 
above the average. The tenants do not obtain quite so high a 
yield as the owners' highest yield. It is expected that they would 
be more conservative in their investment on production. 



RELATION OF POTATO YIELDS TO EXPENSES 



Table XLII. 



Yield, 

Barrels per 

Acre. 

60 or less, 

61 to 70, . 
71 to 80, . 
81 to 90, . 
91 to 100, 

101 and over 



-Relation of Yield to Expenses on 194 Potato Farms Operated 
by Owners in Monmouth County, New Jersey. 



No. of 
Farms. 

22 

28 

61 

38 

35 

10 



Crop Acre 
Expense. 
127.10 
32.10 
33.70 
32.40 
3-.. 60 
45.50 



Fertilizer 

per Acre, 

$6.70 

8.60 

9.00 

n..50 

3.90 

12.50 



Acres of 
Potatoes 
per Farm, 

13.6 

26.7 

26.8 

28.7 

30.2 

31.8 



Total 
Crop Acres 
per Farm. 

52.8 
75,7 
73.5 
78.6 
79.4 
63.0 



The crop acre expenses do not increase proportionately with 
the increased yield. With the exception of the 'first and last 
classes, the difference is not marked. The fertilizer expenses, 
on the other hand, do increase regularly with increased produc- 
tion. However, much of this increase in fertilizer expense is 
due to the increased proportion of potato acreage. The high 
producing farms used a somewhat greater amount of fertilizer 
than the low producers. 



Table XLII I. — Relation of Yield to Expenses on 149 Potato Farms Operated 

by Tenants in Monmouth County, New Jersey. 

Yield, Operators' Fertilizer Acres of Total 

Barrels per No. of Crop Acre per Crop Potatoes Crop Acres 

Acre, Farms, Expense. Acre. per Farm, per Farm. 

60 or less 4 $13.60 $2.90 14.0 73.0 

61 to 70, 22 18.20 4.50 21.6 80.7 

71 to 80 41 18.50 4.40 28.7 85.8 

81 to 90, 44 20.10 4..30 31.7 93.0 

91 to 100 30 22 80 5.40 34.7 84.2 

101 and over, 8 20.50 5.90 .37.3 90.1 



The tenants' expenses are very similar to those of the owners 
in relation to both total current expenses per acre and fertilizer 
expense per crop acre. Since the share tenant pays for but half 
of the fertilizer, the acre cost is low, as it represents only half of 
the total fertilizer expense. 



64 



RELATION OF POTATO YIELDS TO LABOR 

Table XLIV. — Relation of Production to tiie Man, Horse and Equipment 

Labor on 194 Potato Farms Operated by Owners in Monmouth 

County, New Jersey. 

Yield, ■ Crop Acres 

Barrels per Crop Acres Crop Acres per $100 Work TTnits Work TTnita 

Acre. per Man, per Horse. Equipment. per Man, per Horse. 

60 or less 26.6 13.8 9.0 200 80 

61 to 70, 27.9 14.3 10.0 204 83 

71 to 80 27.8 15.1 8.8 208 89 

81 to 90, 27.1 13.6 9.3 214 85 

91 to 100, .. 28.8 13.8 7.8 217 82 

101 and over, 22.9 11.6 5.7 208 84 

The men and horses appear to be far more efficient on the more 
productive farms since they handle just as large an acreage of 
crops whether the yield is high or low. This is emphasized again 
when measured by work units. The men on the more productive 
farms get their labor at the same acre cost as those on the low 
producing areas, while their receipts are much larger as will be 
shown later. 



Table XLV. — Relation of Production to Man, Horse and Equipment Labor 

on 149 Potato Farms Operated by Tenants in Monmouth 

County, New Jersey. 

Yield, Crop Acres 

Barrels per Crop Acres Crop Acres per $100 Work TTnits Work Units 

Acre. per Man, per Horse. Equipment. per Man. per Horse. 

60 or less 36.5 20.9 16.8 199.8 77.0 

61 to 70, 33.1 16.4 11.9 222.8 93.0 

71 to SO, 34.1 13.1 10.8 255.9 84.6 

81 to 90 33.2 15.6 11.2 229.8 88.3 

91 to 100, 22.8 14.2 10.1 219.5 86.6 

101 and over .Sl.O 15.0 8.2 2.33.3 90.4 

As previously noted the tenants are more economical in their 
use of labor, and here again it contrasts with that of the owners. 
Though the difference is not great, there does appear to be some 
relation between production and number of acres of crops handled 
per man. When measured by work units, and thus considering 
the proportion of potatoes per farm, the men on the low pro- 
ducing farms accomplish less than on the high producing farms. 
The same relation is not true for the horse labor. Horses appear 
to handle just as large a crop acreage whether* it is a high or a low 
producing farm. High production does not materially affect the 
acre cost on these farms as shown by the preceding data. The 
machinery investment on the other hand does increase. The high 
producing farms are better equipped, a condition which may in- 
crease the efficiency of equipment labor. If a farmer with the 
same man and horse labor cost can produce twice the yield by 
vskillful cropping and a slightly increased investment in fertilizer 



65 

and seed, this should be a very attractive manner of increasing 
profits on these farms. On the whole these results are not sur- 
prising. The main increased labor cost we would expect to- be 
for picking the potatoes and hauling them tO' the railroad. Pick- 
ing is a minor item among a large number of more important 
ones. Again, on most of the farms the hauling of a large or a 
small yield would not necessitate the farmer's buying an extra 
team oi horses. Costs such as cutting seed, plowing, digging, 
etc., remain about the same regardless of production. 

RELATION OF POTATO YIELDS TO FARM VALUES 

Table XLVI. — Relation of Production to Real Estate Values and Receipts 

on 194 Potato Farms Operated by Owners in Monmouth County, 

New Jersey. 

Yield, Potato Other Crop Stock- 
Barrels per ' Value per Receipts Receipts Receipts per Total Acre 
Acre. Acre. per Acre. per Acre, Crop Acre. Receipts, 

60 or less, $101.20 $81.30 $12.70 $."3.00 $33.80 

61 to 70, 111.70 103.10 12.70 5.20 50.10 

71 to 80 143.90 111.20 13.10 5.no 55.40 

81 to 90 153.70 118.80 15.70 ."5.30 59.80 

91 to 100, 160.00 138.80 18.60 4.80 69.60 

101 and over 205.10 150.10 29.90 5.30 96.80 

The high producing farms have a greater acre value, as one 
would expect. However, they are comparatively not as high as 
the low producing farms since these high producers are twice as 
valuable per acre as are the low producers, while the receipts are 
almost three times as great. This is very striking when, with 
the same approximate labor cost per acre and a little increased 
fertilization, it is possible to obtain three times the receipts. The 
low value and low production of these farms may be due to 
several causes. In the first place, some of these farms are natu- 
rally more fertile and more productive than others ; again, low 
production and low farm values are often due to the lack of care 
and poor tillage given the farm by the operator. The latter 
may often be the cause of low production rather than the lack 
of fertility in this region. A poorly tilled and operated farm 
will not be valued as high as one maintained in a more pro- 
ductive state. 

Table, XLVIl. — Relation of Production to Real Estate Values and Tenants' 

Receipts on 149 Potato Farms Operated by Tenants in Monmouth 

County, New Jersey. 

Yield, Potato Other Crop Stock 

Barrels per Value per Receipts Receipts per Receipts Total Acre 

Acre, Acre. per Acre. Acre. per Acre. Receipts, 

60 or less $109 .$39.10 $3.50 $1.10 $14.00 

61 to 70, 104 58.20 6.40 3.90 24.70 

71 to 80 125 55.20 6.10 3.90 27.90 

81 to 90, 156 64.30 7.60 3.50 .30.80 

91 to 100, l.'Se 72.40 8.10 2.90 37.10 

101 and over 185 69.90 10.20 4.10 42.60 

5 Hx 



66 

The farm acre value of the tenant farms is somewhat less than 
that of the owner farms. So, too, are the acre receipts for pota- 
toes on the former less than half those on the latter. The tenants' 
stock receipts on the other hand are more than those of the 
owrters ; moreover, the tenant does not always share all the stock 
receipts as he does the crops, and therefore he has a better bargain 
on his stock than on crops. 

The most important bearing this table has from^ the tenant's 
standpoint is the fact that if he rents a naturally low productive 
farm he gets no greater proportion of the receipts than he does 
on the high producing one. At the same time the cost of his 
horse and man labor spent on a high producing farm will bring 
the tenant much larger returns than if spent upon a low producing 
one. A tenant should consider this fact carefully in renting. 
Hence on a naturally low producing farm he should have a larger 
proportion Oif the receipts than on the more productive place. 

RELATION OF PRODUCTION TO SUCCESS 

Table XLVIII. — Opportunities for Making a Given Labor Income with a 

Certain Acre Production on 194 Potato Farms Operated by 

Owners in Monmouth County, New Jersey. 

, Labor Income , 

$1 $401 $701 $1,001 $1,601 $2,001 $2,501 

■yield, Barrels No. of Less to to to to to to and 

per Acre. Farms, than $1. $400. $700. $1,000. $1,500. $2,000. $2,500. Over. 

60 or less 22 11 10 . . 1 

61 to 70 2S 10 6 2 1 3 3 3 

71 to SO, 61 11 11 10 13 6 2 2 6 

81 to 90 3S 2 5 5 4 11 7 2 2 

91 to 100, 35 2 3 S 2 9 1 3 7 

101 and over, 10 10 1 1 1 1 2 3 

As production increases, the opportunities for making a good 
return are greater. For the 22 farmers with a production of 
less than 60 barrels per acre, one-half are losing money, while 
only one has a labor income of over $400. For the men who 
have a yield of 100 barrels or more per acre one-half get over a 
$2,000 labor income return. There is a steady increase in the 
number of successful farms as production increases. 

Table XLIX. — Opportunities for Making a Given Labor Income with a 

Certain Acre Production on 149 Potato Farms Operated by 

Tenants in Monmouth County, New Jersey. 



Yield, Barrels No. of 

per Acre. Farms. 

60 or less, 4 

61 to 70, 22 

71 to 80, 41 

81 to 90 44 

91^to 100, 30 

101 and over, 8 



Less 
than $1, 
2 
4 
1 
5 



$1 

to 

$400. 

10 
13 



$401 

to 

$700. 

4 
14 
9 
6 
1 



-Labor Income- 



$701 

to 

$1,000. 

4 
7 
7 
2 



$1,001 
to 
$1,500. 



$1,501 

to 
$2,000. 



$2; 



001 $2,501 
to and 

1,500. Over. 



67 

The number of tenants who make high labor incomes with 
large production, increases more uniformily with production 
than does the number of owners. Since much of this profit is 
due to greater efficiency in labor expended, the tenants should 
show a more uniform increase in the proportion making large 
returns. Oif the four tenants whose production was less than 
60 barrels per acre, none made over $400, while of the eight 
tenants who had a production of 100 barrels or more, all but 
one made a labor income of over $1,000. 

High production then does not guarantee success, but it is 
one of the essential factors for success on these farms. Of the 
owners only 10," or 5 per cent>, of the total number got a pro- 
duction of one-fifth above the average, while for the tenants, 
8, or 5 per cent., likewise had a yield of over 100 barrels. Thus 
only a small proportion get much above the average, and of 
these farms it is not in any case 50 per cent, above the average. 
The highest producing farm was that of an owner whose potato 
yield was 45.4 per cent, above the average. However, the 
average potato production of these farms as a group is high. 
When any industry has been developed to a high degree, such 
as the production of potatoes in this region, it becomes more 
difficult to raise the individual farm above the average standard 
for the region. To what extent increased fertilization, seed, and 
green manures would bring profitable returns, has not been fully 
ascertained on these farmis. The most profitable production may 
have been reached, but it has evidently not been passed by any 
class of farms as the profits have all increased uniformly with 
increased yield. Again, the highest producing farm showed the 
highest acre profit. This argues well for high production, and 
it certainly is paying well to raise large acre yields of potatoes 
in this region. The farms located on favorable soils could pro- 
duce at least one-tenth to one-fiifth above the average with profit. 
On the other hand, it must not be understood that high produc- 
tion guarantees success on these farms. It is one of the major 
factors controlling success, and therefore must be included as 
one of the essentials for success. Production depends upon many 
factors, some of which are not within the farmers' control, such 
as rainfall and temperature. If these are not favorable to pro- 
duction, increased labor, fertilizer, and care for the crops, will 
bring no proportionate returns since the latter are not the limit- 
ing factors of production. 



g8 



COST OF POTATO PRODUCTION 



No work was done to determine the acre and bushel cost of 
potato production of these farms. By the farmers this is fre- 
quently estimated at $60 to $70 per acre. They seldom include 
depreciation and interest in their estimation. Out of the 370 
potato farms, there were 25 from which practically nothing but 
potatoes was sold. The operators of these farms were putting 
nearly all their efforts in the production of potatoes. Other 
crops were raised, and some stock kept, the latter for family 
use, and the crops mainly to keep the horses, a. few cows, hogs 
and chickens. 



Table L. — Acre Cost of Producing Potatoes on 25 Potato Farms in IVIon- 
mouth County, New Jersey. 

Total acres of potatoes 919 

Labor expense $21 58 

Cost of potato seed, 4.85 bbls 10 76 

Fertilizer expense 24 94 

Machinery depreciation 2 35 

Spraying materials 51 

Barrels 55 

Cover crop seed 73 

Taxes, 3 10 

Insurance, 94 

Interest 21 72 

Grass seed per acre, 92 

Miscellaneous, 7 62 

Total acre expenses $95 72 

Receipts from crops other than potatoes, divided by the 
number of acres of potatoes, 10 57 

Cost per acre of potatoes $85 15 

yield per acre 92. 1 bbl. 

Cost per barrel, 0.92 

Cost per bushel, 0.33 

This is arriving at the cost of production in a different man- 
ner than usual. None of these farms had OA^er lo per cent, 
of their receipts from any source except potatoes. The whole 
had an average of 7.8 per cent, of their total receipts from 
a source other than potatoes. These receipts have been de- 
ducted from the current cost so that the figure arrived at, 
33 cents per bushel or 92 cents per barrel, must be quite 
representative of the production cost of potatoes in this 
region. It represents the actual cost of raising potatoes when 
the man has his house, garden and products to use for his family 
in addition tO' what the receipts show for his efforts. The re- 
ceipts per acre for potatoes were $123.48, leaving a margin of 
$3'8-33 pel" acre for these farms. The average price received for 
the potatoes was $1.45 per barrel, and the average labor income of 
these farms was $2,123. Some of these items may be considered 



69 

high, e. g., fertilizer per acre. This is true if we consider the 
application of fertilizer to potatoes alone. But a limited amount 
was purchased to apply to corn, which was raised to feed stock 
and work horses. The spraying cost may be considered low, 
but very little spraying material is used except arsenicals, and 
these are not used in all cases. Interest may appear quite high, 
yet the best part of the farm- is used for potatoes, and other crops 
are raised to feed the horses necessary to have in raising the 
crop. Hence it is not as excessive as it may appear. 

An acre cost of $85.15 would represent a conservative figure 
for the cost of producing potatoes in this area for 19 14. On 
these 25 farms, this would be 33 cents per bushel, or 92 cents 
per barrel. When potatoes sell at $1.42 cents per barrel, their 
normal price for the 7 years up to 191 5, a margin of 50 cents 
per barrel is left. Hence, a grower who has an average pro- 
duction makes about $40 per acre on potatoes. 

PROPORTION OF CROP ACRES IN POTATOES 

That the potato crop is profitable has already been fully 
demonstrated. Just to what extent of specialization it will lend 
itself with profit can be demonstrated only by isolating those 
farms producing the largest proportion of the crop. There are 
numerous factors to consider when we desire tO' increase or 
decrease the area of a certain crop, but the most important con- 
sideration is the results to be obtained through any change of 
crop area. Returns will show whether there is a lack of proper 
maintenance of fertility, the establishing of the wrong rotation 
or the wasteful use of labor. 

RELATION OF PROPORTION OF CROP ACRES IN POTATOES 
TO PROFITS 

Table LI. — Relation of Proportion of Crop Acres in Potatoes to the Labor 

Income on 194 Farms Operated by Owners in Monmouth 

County, New Jersey. 

No, -with Per Cent. Av'age Per 

Per Cent. Crop Potatoes, Minus Minus Average Cent. Crop 

Crop Acres No. of Acres per Acres per Labor Lator Labor Acres in 

in Potatoes. Farms. Farm. Farm. Income. Income. Income. Potatoes. 

27 80.S 13.6 5 18.5 $442 16.8 

48 75.6 20.0 14 29.2 464 26.3 

47 75.6 26.7 12 25.5 788 35.3 



20 or less, 

21 to 30, . . 
31 to 40, . . 
41 to 50, . . 
51 to 60, . . 
61 and over, 



38 67.6 30.8 6 16.0 1,081 45.5 

16 61.8 34.0 1- 6.0 1,611 .^5.1 

18 eaJR 48.0 1 6.0 2,127 69.6 



4 

The highest profitable proportion of potatoes has apparently 
not been reached. The last class of 68.8 per cent, of the crop 



acres in potatoes shows the highest profit. This may be near 
the limit of the most profitable proportion, but it has certainly 
not passed it. The difference is striking and strongly empha- 
sizes the fact that potatoes are the most desirable enterprise in 
this area. That they adapt themselves well to specialization is 
indicated by these results. That the farms with a high potato 
acreage should furnish a labor income of almost five times as 
much as the farms with a small acreage in potatoes is quite 
convincing. 

Table LI I. — Relation of Proportion of Crop Acres in Potatoes to Labor 
income on 149 Tenant Farms in Monmouth County, New Jersey. 













Average 


Per Cent. 






Potatoes, 




Per Cent. 


Crop Acres 


No. of 


Crop Acres 


Acres per 


Average 


Crop Acres 


in Potatoes. 


Farms, 


per Farm, 


Farm. 


Labor Income. 


in Potatoes, 


20 or less, 


11 


7S.0 


l.S.S 


$186 


17.7 


21 to 30, 


47 


95.1 


2.3. S 


483 


25.0 


31 to 40 


45 


92.2 


31.9 


S88 


34.6 


41 to 50, 


27 


77.0 


^4.3 


1,002 


44.5 


51 to 60, 


11 


72.5 


39.3 


968 


54.2 


61 and over, . . . . 


8 


71.2 


46.9 


1,224 


65.8 



The tenants do not have such a large proportion of farms 
with a high percentage of potatoes. After 50 per cent, or half 
of- their crop acres are in potatoes the labor income increase for 
the tenant is not as marked as for the owners. The tenants 
who have an average of 44 per cent, of their crop acres in 
potatoes have a labor income of $1,002, while the highest class, 
with 66 per cent., or two-thirds of their crop acres in potatoes, 
have a return of $1,224. The owners in this class secure a 
return of $2,127. It is not as profitable for the tenants to have 
an exceedingly high proportion of potatoes as for the owners. 
This, too, is emphasized by the fact that a smaller number of 
tenants have such a large proportion of their crop acres in 
potatoes. On examining the cost of producing potatoes, as 
previously shown, this is explained. The expenses for labor, 
fertilizer, and seed furnished by the tenant remain about sta- 
tionary. The landlord's interest charge against potatoes will 
decrease with the increasing proportion of potatoes planted. 
Therefore, the tenant's expenses per crop acre remain about the 
same, while the landlord's decrease. Thus it is a more profitable 
crop for the landlord as well as for the owners operating their 
own farms. While potatoes are profitable for the tenants, they 
are comparatively more profitable to the mvners and landlords. 



71 



LABOR 








INCOLIE 






1^2100 




/ 


/ 


1900 




/ 








/ 




1700 




r^ OMfi.'ERS / 




1500 




/ 




1300 




/ 




1100 




/ TEIIAUTS / 




900 




l/^~^^^ 




700 




/ 




500 




Jj 




300 




7 




100 










10^ 


20J2 30^ A0% 50^ e>0% 


70^ 




PROPORTION CROP AGR7.S IN POTATOES 





Fig. 23. — Relation of Proportion of Crop Acres in Potatoes to Labor 
Income on 343 Farms in iVIonmoutii County, New Jersey. 



72 



Potatoes, 


Otter Crop 


Other Crop 


Receipts per 


Receipts 


Receipts 


Acre. 


per Farm. 


per Acre, 


$114.00 


$931 


$13.90 


111.50 


1,008 


18.00 


116.80 


712 


14.60 


117.70 


415 


11.30 


126.60 


676 


24.40 


122.90 


195 


9.30 


Stock Receipts 


Total Farm 


Total Acre 


per Acre, 


Receipts. 


Receipts. 


$4.30 


$2,8.50 


$35.30 


4.40 


3,586 


47.40 


6.50 


4,442 


58.70 


5.10 


4,421 


65.40 


5.80 


5,^45 


86.60 


5.10 


6,346 


92.30 



RELATION OF PROPORTION OF CROP ACRES IN POTATOES TO 

RECEIPTS 

Table Llll. — Relation of Proportion of Crop Acres in Potatoes to Receipts 

on 194 Potato Farms Operated by Owners in IVlonmouth County, 

New Jersey. 

Per Cent, of Potatoes, 

Crop Acres Receipts per 

in Potatoes, Farm. 

20 or less, $1,552 

21 to 30 2,218 

31 to 40 3,119 

41 to 50 3,621 

51 to 60 4,291 

61 and over 5,889 

Per Cent, of 

Crop Acres Stock Receipts 

in Potatoes. per Farm, 

20 or less, $349 

21 to 30, 331 

31 to 40, 495 

41 to 50 344 

51 to 60, 361 

61 and over, 348 

Receipts per acre of potatoes increase slightly with the in- 
crease in proportion of acres in potatoes. The farm receipts for 
all crops other than potatoes are greater on the farms with a 
smaller proportion of crop acres in potatoes, but the crop acre 
receipts for these crops do not vary uniformly with the increase 
of potato acreage. The stock receipts per farm are about the 
same, though the farms with less potatoes have somewhat more 
stock. The total farm receipts and acre receipts, including 
receipts from miscellaneous sources, are much greater per farm, 
as well as per acre, on the areas having a high proportion of 
potatoes. 

Table LIV. — Relation of Proportion of Crop Acres in Potatoes to Receipts 

on 149 Potato Farms Operated by Tenants in IVIonmoutli County, 

New Jersey. 

Per Cent, of Potatoes, Potatoes, Other Crop Other Crop 

Crop Acres Receipts Receipts Receipts Receipts 

in Potatoes. per Farm, per Acre. per Farm. per Acre. 

20 or less, $875 $63 $296 $4.90 

21 to 30, 1,380 58 499 6.90 

31 to 40 2,169 69 469 7.80 

41 to 50 2,086 61 386 9.00 

51 to 60 2,458 63 155 4.90 

61 and over, 3,092 66 43 1.70 



Per Cent, of 

Crop Acres Stock Receipts 

in Potatoes. per Farm. 

20 or less $292 

21 to 30 : 364 

31 to 40 367 

41 to 50, 182 

51 to 60 239 

61 and over. 186 



Stock Receipts 


Total Farm 


Total Acre 


per Acre. 


Receipts, 


Receipts. 


$3.7 


$1,519 


$19.5 


3.8 


2,267 


23.8 


4.0 


3,042 


34.1 


2.4 


2,736 


35.2 


3.3 


2,891 


39.9 


2.6 


3,362 


47.1 



73 

The relation of tenants' receipts to the proportion of crop acres 
in potatoes, is very similar to those of the owners', except that on 
the tenant farms, receipts from other crops and stock decrease 
with an increased proportion of potatoes. The tenant must use a 
larger portion of his hay and corn to feed his horses, leaving a 
smaller proportion to sell. The owner farms, too, have rela- 
tively less stock on the farm^ with a high proportion of potatoes, 
yet the receipts from the stock are about the same. Evidently, 
more efficient use is made of the stock on the latter farms. 



RELATION OF PROPORTION OF CROP ACRES IN POTATOES TO 

EXPENSE 

Table LV, — Relation of Proportion of Crop Acres in Potatoes to Expenses 

on 194 Potato Farms Operated by Owners in IVIonmouth County, 

New Jersey. 

Per Cent. Total Cur- Total Cur- Farm Acre Cash Cash 

of Crop Acres rent Farm rent Acre Fertilizer Fertilizer Lahor Cost Labor Cost 

in Potatoes. Expense. Expense, Cost. Cost. per Farm, per Acre. 

20 or less, $1,67.5 $20.70 $391 $4.S0 $.568 ,$7.00 

21 to 30, 2.313 30.60 575 7.60 8-17 11.20 

31 to 40, 2,551 33.70 669 8.80 913 12.10 

41 to 50, 2,618 38.70 723 10.70 893 13.20 

51 to 60, 2,489 40.30 802 13.00 726 11.80 

61 and over, . . 3,302 48.00 1,123 16.30 952 13.80 

The expenses increase materially with the increased potato 
acreage, and of these expenses fertilizer is the one which in- 
creases the most. L-abor increases slightly, but not to such a 
great extent as one might suppose. Again, the receipts and ex- 
penses are not only far greater on the farms high in potato 
acreage, but the proportion of the receipts used for the expenses 
is smaller on the farm high in potato acreage. Thus the latter 
farms are doing business in a more economical manner than is 
the case where less potatoes are raised and more from other 
crops. It is a good indication that the farms of high potato 
acreage are not approaching diminishing returns due to over 
specialization. 



Table LVI. — Relation of Proportion of Crop Acres in Potatoes to Expenses 

on 149 Potato Farms Operated by Tenants in IVIonmouth County, 

New Jersey. 

Per Cent. Total Cur- Total Cur- Farm Acre Cash Cash 

of Crop Acres rent Farm rent Acre Fertilizer Fertilizer Lahor Cost Lahor Cost 

in Potatoes. Expense. Expense. Cost. Cost. per Farm, per Acre, 

20 or less $1,171 $15.20 $210 $2.60 $618.30 $7.80 

21 to 30, 1,602 16.80 323 3.30 779.30 8.20 

31 to 40, 1,884 21.10 467 4.90 857.10 9.00 

41 to 50, 1,614 20.90 391 5.10 742.60 9.70 

51 to 60, 1,740 24.00 440 6.00 702.70 9.80 

61 and over, . . 2,011 28.20 693 9.70 695.00 9.50 



74 

The tenants need to use a larger proportion of their receipts 
to meet current expenses than the owners. While they get but 
half of the receipts, their current expense is more than half of 
the owners' on the same type of a farm. When comparing the 
owners and tenants, it is quite noticeable that the tenants have 
only about three-fourths so heavy a cash labor expense as the 
owners. As with the owners, the cash labor expense is somewhat 
greater for farms higher in potato acreage, but the difference is 
not large. 



RELATION OF PROPORTION OF CROP ACRES IN POTATOES TO 

LABOR 

Table LVII. — Relation of Proportion of Crop Acres In Potatoes to Man, 

Horse and Equipment Labor on 194 Potato Farms Operated by 

Owners in Monmouth County, New Jersey. 

Per Cent. Crop Acres 

Crop Acres Crop Acres Crop Acres per $100 Work Units Work Units 

in Potatoes. per Man. per Horse. Equipment. per Man. per Horse. 

20 or less 35.3 17.9 12.6 220.2 83.5 

21 to 30 26.5 14.1 0.5 202.1 80.6 

31 to 40 27.1 13.5 8.2 215.6 §3.5 

41 to 50 25.8 13.1 7.4 200.1 81.7 

51 to 60 25.8 11.4 7.0 230.2 86.2 

61 and over 22.9 11.7 7.7 195.6 93.2 

While the crop acres per man, horse and equipment labor are 
more for the farms with less potatoes, if we omit the first class 
the difference is not great. By examining the man and horse 
work units, which are a more accurate measure as they include 
the live stock and give the proper value to all the different 
crops for all the labor performed upon them, we find the men 
and horses get practically the same amount of work accomplished 
on all the farms regardless of potato acreage. 

Table LVII I. — Relation of Proportion of Crop Acres in Potatoes to Man, 

Horse and Machinery Labor on 149 Potato Farms Operated 

by Tenants in Monmouth County, New Jersey. 

Per Cent. Crop Acres 

Crop Acres Crop Acres Crop Acres $100 of Work Units Work Units 

in Potatoes. per Man. per Horse, Equipment. per Man. per Horse, 

20 or less, 32.4 15.9 13.9 192 72.0 

21 to 30 34.8 17.2 11.1 226 87.5 

31 to 40 31.2 15.5 11.2 238 89.2 

41 to 50 27.6 13.1 10.0 230 86.4 

51 to 60, 28.8 12.0 <?.2 257 89.6 

61 and over 27.6 12.9 11.6 261 99.6 

As on the owner farms, the number of crop acres per man, 
horse and $ioo worth of equipment is greater on the farms with 
the smaller potato acreage. Again, the difference is not striking. 
The man and horse work units are, on the other hand, greater 
per man and per horse on the farms having the larger potato 



, 75 

acreage. According to the data, these farms with a high pro- 
portion of all crop acres in potatoes are more economical and 
efficient in the use of labor than are those with a smaller acre- 
age of potatoes, but with a larger proportion of other crops and 
stock. In this locality potatoes lend themselves to high special- 
ization, and are fully as economical in the use of horse and man 
labor as are other crops and stock, when a more diversified type 
of farming is followed. Diversification, with a larger number 
of crops and with more stock, does not provide for the use of 
labor more efficiently on these farms. In many locahties this 
would not be true, but here potatoes give a fairly uniform dis- 
tribution of labor. 

Some of the plowing is done during the winter whenever a 
period of favorable weather prevails. The soils are light and 
become dry in a very short time after rains. Hence, tillage is 
not as greatly hindered by adverse weather conditions as would 
be the case in a heavier soil. Ordinarily, plowing is fairly well 
completed by the latter part of March. Planting usually begins 
at this time and lasts up to the middle of April, Cultivation 
begins as soon as planting is completed and lasts up until July. 
Digging begins in this month and continues until October. 
After digging the fields are seeded to cover crops. This leaves 
but a short interval during July when other labor does not con- 
flict with potatoes. During the late fall and winter the potato 
fertilizer and seed is hauled while some of the plowing is done 
the latter part of the winter. During the break in July the hay 
and winter grain, if grown, is harvested. These two crops do 
not conflict materially with potatoes. Potatoes, as grown in 
this region, allow high specialization without lessening the labor 
efficiency. In fact, it appears to make a more even distribution 
than is found on many general crop farms. 



RELATION OF PROPORTION OF CROP ACRES IN POTATOES TO 

YIELD 

Table LIX. — Relation of Proportion of Crop Acres in Potatoes to Yield on 

194 Potato Farms Operated by Owners in IVIonmouth County, 

New Jersey. 

Per Cent, of 

Crop Acres No. of Farm Yield, Acre Yield, 

in Potatoes. " Farms. Bbls. Bbls, 

20 or less, 27 1.018 74.7 

21 to 30, 48 1,598 80.3 

31 to 40 47 2,156 80.7 

41 to 50, 38 2,539 82.5 

51 to 60 16 3,001 88.2 

61 and over, 18 4,129 86.2 

These data look very promising for the more highly specialized 



76 

farms. The yields are not only being maintained, but are slightly 
increased, with an increase in the proportion of potatoes. This is 
in view of successive cropping, which is a more frequent practice 
on the farms having a high potato acreage. 



Table LX. — Relation of Proportion of Crop Acres in Potatoes to Yield on 

149 Potato Farms Operated by Tenants in Monmouth County, 

New Jersey. 

Per Cent, of 

Crop Acres No, of Tarm Yield, Acre Yield, 

in Potatoes. Farms. Bbls. Bbls. 

20 or less 11 9S1 Tl.O 

21 to 30 47 1,893 79.3 

31 to 40 45 2,752 85.1 

41 to 50 27 3,050 88.9 

51 to 60 11 3,454 87.7 

61 and over 8 4,148 88.2 

The tenants, too, have a higher acre yield upon the farms with 
the highest ].>otato acreage. This is a very convincing answer to 
the frequently asked question whether the highly specialized 
potato farms in Monmouth County can maintain their fertility, 
organic matter, and yield without a more careful rotation than 
many of the more prominent growers follow. Their yields are 
being not only maintained but increased. Successive cropping 
evidently does not have an injurious effect upon the potato' yield. 
As long as diseases can be kept under control there appears to be 
no material danger from successive cropping. Whether this will 
be continued indefinitely can be determined only by future results 
in this area. Some unknown factor may enter to change con- 
ditions, but the present indications show no* danger. 



RELATION OF PROPORTION OF CROP ACRES IN POTATOES TO 

SUCCESS 

Table LXI. — Relation of Proportion of Crop Acres in Potatoes to a Given 

Labor Income on 194 Potato Farms Operated by Owners in 

Monmouth County New Jersey. 

, Labor Income 1 

$1 $401 $701 $1,001 $1,501 $2,001 $2,501 

Per Cent. Crop No. of Less to to to to to to and 

Acres in Potatoes. Farms, than $1. $400. $700. $1,000. $1,500. $2,000. $2,500. Over. 

20 or less, 27 5 6 7 4 4 1 

21 to 30 48 14 10 8 3 9 1 3 

31 to 40, 47 12 8 • 2 5 7 3 6 4 

41 to 50 38 6 5 7 5 6 4 1 4 

51 to 60, 16 1 4 1 1 4 4 1 

61 and over 18 1 1 1 3 2 1,2 7 

Farms in all classes lost money regardless of the potato acreage. 
However, the losses were less frequent on the farms with the 
larger proportions of potatoes, while on farms with yo per cent. 
of the crop acres in potatoes over one-third the total number O'f 



77 

owners made a labor income of over $2,500. Only one farm out 
of 27 produced over $1,500 in the class with less than 20 per 
cent, crop acres in potatoes. 



Table LXII. — Relation of Proportion of Crop Acres in Potatoes to a Given 

Labor Income on 149 Potato Farms Operated by Tenants in 

IVlonmouth County, New Jersey. 

I Labor Income , 

?1 $401 $701 $1,001 $1,501 $2,001 $2,501 

Per Cent. Crop No. of Less to to to to ' to to and 

Acres in Potatoes. Farms, than $1. $400. $700. $1,000. $1,500. $2,000. $2,500. Over. 

20 or less, 11 3 4 3 1 

21 to 30 47, 6 17 13 3 6 2 

31 to 40, 45 3 11 5 9 9 4 3 1 

41 to 50, 27 . . 6 7 4 2 4 3 1 

51 to 60 11 . . 2 3 2 2 2 

61 and over, 8 .. .. 2 1 2 2 1 2 

The results for the tenants are more clearly defined than for 
the owners. Hiere none of the tenants who^ had 41 per cent, or 
more of their farm in potatoes lost money. 

It is quite evident that these farms have at least not passed the 
highest profitable proportion of potatoes. The highest profits are 
obtained when two acres out of every three are planted to the 
potato crop. The third crop acre will furnish sufficient feed for 
the work hoises and a few cows, pigs and chickens necessary to 
supply the farmer's table with butter, milk, eggs, and meat. A 
single crop v^/hich permits successive cropping without decreasing 
its production, which makes economical use of man, horse and 
machinery labor, and which provides for a large farm business 
on a moderate-sized farm, makes a very successful crop for 
specialization. Potatoes on these farms prove to be the crop 
having all these characteristics. One other crop deserves atten- 
tion at this point, namely, alfalfa, which is found on a compara- 
tively few places, averaging about an acre per farm. AVhile it 
would interfere somewhat with the labor of potato raising in 
June and August or September, yet it might furnish a far more 
satisfactO'ry hay crop than the grasses. This is especially true 
on the farms with a small acreage, since it would allow a larger 
area for potatoes and corn. While a few farmers are adopting 
alfalfa in this capacity, the number is not so great as it should be 
in order to bring the greatest profit. The crops then might be 
alfalfa for hay for the horses and a few cows or other stock, 
corn for horses and stock, with the remainder of the farm in 
potatoes so far as the soils will permit. This would rnake the 
most profitable crop combination for these farms. This would 
eliminate a large area of grass for hay, and rye and wheat 
for grain to sell, as these soils are not well adapted to grass and 



78 

small grains. However, rye is a desirable crop to grow with 
co'wpeas or soybeans in securing sufficient organic matter to build 
up the soils which are light or deficient in organic content. 

The potato thus lends itself admirably to specialization. It is 
efficient in the use of labor and equipment. It provides for good 
profits, and continuous culture is not decreasing the yield. 

This is an instance when specialization rather than diversifica- 
tion is most profitable. The prevailing opinion of men interested 
in farm management work that diversity and stock are essential 
toi highest profits is erroneous if applied to an area such as this 
potato region. Recommendations in farm management practice 
should be made with the same consideration as when recommend- 
ing a fertilizer application. With certain conditions certain prin- 
ciples are applicable. Too broad applications should not be made. 

-^jSgii, STOCK 

Many types of farming other than truck-raising and fruit 
growing or similar intensive types, require that a certain propor- 
tion of live stock be kept in order to maintain fertility, distribute 
labor more uniformly, add to the diversity, and use up waste 
products or cheap feed from the farm. Surveys on such areas 
usually show that a certain amount of live stock brings greater 
profit to the farmer, and it is recommended that stock be added 
tO' the farm business. This potato area has many farms which 
keep only sufficient stock to furnish the farmer's family with 
milk, butter, eggs and meat. Years ago these farms were far 
more heavily stocked, and at present we sometimes hear it de- 
plored that the region has let its live-stodk industry diminish to 
such a marked degree. The following data will show to what 
extent these farms should increase or decrease their live stock in 
order to have the proper proportion. 

RELATION OF LIVE STOCK TO LABOR INCOME 

Table LXIII. — Relation of Live Stock to Profits on 194 Potato Farms Op- 
erated by Owners in IVIonmoutli County, New Jersey. 

stock Receipts, Productive No. with 

per Cent, of No. of Animal TTnits Laljor Minus Lalior 

Total. Farms. per Farm. Income, Income. 

to 5 63 3.6 $1,256 15 

5.1 to 10 63 5.2 803 12 

10.1 to 20, 44 5.7 740 8 

20.1 to 30 13 7.9 612 1 

30.1 and over 11 10.5 742 3 

As the farmers increase the stock on the farm, their profits 
decrease. The farms having an average of 3.6 productive animal 



79 



units or an equivalent 3 cows and 60 chickens, which is the 
equivalent of one cow for each 20.9 crop acres, make a larger 
labor income than any of the succeeding classes which have more 
stock. The relation is consistent for all excepting the last class, 
which increases slightly above that of the preceding group. 





■-.'' 




LABOR 

imcol:e 

$1200 


r^ 


/ 


lodo 


- ' / 


' 


800 


^ 'j - 




600 


-^-^ 






5 10 lb 


20 




CROP ACRSS; FOR EACH PRODUCTIVE ANIIiAI. UlIIT 





Fig. 24 Relation of Live Stock to Profits on 194 Farms Operated by 

Owners in Monmoutii County, New Jersey. 

Several factors bear upon this last class to make it approach 
higher profits. Eight out of eleven of these farms are situated 
on the edge of the typical potato region and this location influ- 
ences their stock returns abnormally. 





Productive 




No. with 


No. of 


Animal Units 


Labor 


Minus Laljor 


Farms. 


per Farm. 


Income, 


Income. 


35 


4.5 


$891 


1 


38 


6.6 


682 


5 


48 


6.2 


733 


4 


21 


10.5 


696 


2 


7 


11.6 


749 






8o 



Table LXIV. — Relation of Live Stock to Profits on 149 Potato Farms Op- 
erated by Tenants in Monmouth County, New Jersey. 

stock Receipts, 

per Cent, of 

Total. 

to 5, 

5.1 to 10 

10.1 to 20 

20.1 to 30 

30.1 and over, .... 

The tenant farms do not show the same relation as do those 
of the owners. This may be influenced by the fact that the 
tenants do not always share the stock receipts with the land- 
lord. In such a case the tenants have a better bargain in live 
stock than in potatoes, and should receive comparatively greater 
returns. Therefore, as long as the tenants can stock the farms 
and keep the major portion of their stock receipts, they can 
afford to keep stock. However, there is no apparent advantage 
in doing so, for their returns are not any greater than those of 
the farmers who keep no more stock than what actually is needed 
for family use. 

RELATION OF LIVE STOCK TO TgBHiD AND FERTILIZERS COST 

Table LXV. — Relation of Stock Receipts and Amount of Stock per Farm, 

to Acre Yields and Fertilizer Cost per Crop Acre on 194 Potato 

Farms Operated by Owners in Monmouth County, 

New Jersey. 



stock 




Crop Acres 










Receipts, 




for Each Pro- 


Acres of 




Potato 


Fertilizer 


Per Cent. 


No. of 


ductive Ani- 


Potatoes 


Other 


Yield 


Cost per 


of Total. 


Farms. 


mal Unit. 


per Farm. 


Crop Acres. 


per Acre. 


Crop Acre. 


5% or less, . . . 


63 


20.9 


30.9 


44.4 


86.7 


$10.60 


5.1 to 10 


63 


14.8 


27.9 


49.1 


81.4 


9.10 


10.1 to 20, 


44 


11.7 


22.4 


44.4 


80.2 


8.90 


20.1 to 30, 


13 


9.2 


19.3 


53.1 


78.3 


7.30 


30.1 and over, . 


11 


5.8 


17.9 


42.8 


73.2 


9.60 



The statement that live stock is essential to maintain fertility 
in extensive farming is not borne out by these figures. In fact, 
the farms with the smaller proportion of live stock are produc- 
ing greater acre yields of potatoes than those more heavily 
stocked. There is a consistent decrease in yield as the propor- 
tion O'f stock increases. 

The amount of fertilizer purchased per crop acre is somewhat 
greater for those with the smaller proportion of live stock. But 
these farms, too, have a larger proportion of the crops in pota- 
toes. As the major portion of the fertilizer is applied to the 
potatoes, it is evident that the more heavily stocked farms are 
using less fertilizer per farm but more per crop acre of potatoes. 
This might indicate that the stocked areas are on poorer soils. 



but this does not appear to be the case. From these data it ap- 
pears that a system of potato farming- with green manures and 
commercial fertihzers is more efficient in maintaining and increas- 
ing fertility in ths area than is the use of live stock. The lightly 
stocked farms purchased about 7 tons of fertilizer more than 
those heavily stocked. These seven tons of commercial fertil- 
izers, applied with the green manure cover crop, apparently is 
of more value in adding fertility than are the extra 6.9 animal 
units on these farms. It is merely a question of balancing one 
practice against another in maintaining fertility and production 
on the farm. In this case live stock apparently is not equal to 
commercial fertilizers and green manure cover crops as they are 
used in the area. 

Table LXVI. — Relation of Stock Receipts and Amount of Stock per Farm, 

to Acre Yields and Fertilizer Cost per Crop Acre on 149 Potato 

Farms Operated by Tenants in Monmouth County, 

New Jersey. 



Stock 




Crop Acres 










Receipts, 




for Each Pro- 


Acres of 




Potato 


Fertilizer 


Per Cent. 


No. of 


ductive Ani- 


Potatoes 


Other 


Yield 


Cost per 


of Total. 


Farms. 


mal TTnit. 


per Farm. 


Crop Acres. 


per Acre. 


Crop Acre, 


5% or less, . . . 


35 


17.4 


32.7 


45.8 


90.4 


$10.30 


5.1 to 10 


38 


13.8 


32.4 


56.7 


85.9 


S.90 


10.1 to 20, 


48 


13.8 


28.4 


58.1 


81.4 


8.40 


20.1 to SO 


21 


8.6 


25.6 


65.6 


82.6 


7.60 


80.1 and over,. 


7 


8.8 


23.0 


79.7 


77.0 


5.30 



The tenants have larger farms and fertilize a little less heavily 
than do the owners. The seven farms most heavily stocked have 
decreased their fertilizer expense to almost half that of the 
lightly stocked farms. However, they too have only half of the 
proporton of acres in potatoes as the first class under 5 per cent. 
stock receipts and with 17.4 acres per animal unit. Comparing 
live stock with commercial fertilizer and green manure cover 
crops, the tenants' farms are similar to those of the owners in 
that the most heavily stocked farms are not so productive as 
those more lightly stocked. 

RELATION OF LIVE STOCK TO LABOR 

Table LXVI I.— Relation of Live Stock to Horse and IVlan Labor on 194 

Potato Farms Operated by Owners in Monmouth County, 

New Jersey. 

Acres for 

Stock Receipts, Productive Each Produo- Cash Labor 

per Cent. No. of Animal TTnits tive Animal Crop Acres per Crop 

of Total. Farms. per Farm. Unit. per Horse. Acre. 

5% or less, 63 3.6 20.9 l^-l 511-60 

5.1 to 10, 63 5.2 14.8 13.6 11.80 

10.1 to 20, ^ 44 5.7 ll.T 13.4 11.30 

20.1 to so! 13 7.9 9.2 13.6 10.60 

30.1 and over, ... n 10.5 5.8 13.4 9.30 

6 EX 



82 

The increased proportion of live stock does not materially 
affect the labor expense upon the farm. But since the farms 
with most stock have the smallest prop'ortion of potatoes, the 
direct comparison is not satisfactory. By comparing the farms 
with 10.5 animal units per farm with those of 3.6, we find on 
the more heavily stocked farms seven-tenths of an acre less per 
horse, and $2.30 less per crop acre paid out for labor. On the 
other hand, these farms have less potatoes, a condition which 
probably might infiuence the labor cost to some extent. These 
stock farms have 13 acres of potatoes less per farm but the same 
number of other crop acres. These extra 13. acres of potatoes 
would require considerably more man and horse labor than the 
stock on the stock farms. In comparison with the previous class 
the difference is less marked. The live stock does not appear 
to make any appreciable difference in the more economical use 
of man or horse labor on these farms. 



Table LXVIII. — Relation of Live Stock to Horse and Man Labor on 149 
Potato Farms Operated by Tenants in iVlonmoutli County, 

New Jersey. ' 

Crop Acres 

Stock Receipts, Productive for Each Cash 

per Cent. No, of Animal TTnits Productive Crop Acres Labor per 

of Total. Farms, per Farm. Animal TTnit. per Horse. Crop Aore« 

5% or less, 3o 4.5 17.4 14.1 $9.20 

5.1 to 10 3S 6.6 l.-J.o 15.4 10.10 

10.1 to 20 48 6.2 l.'^.S 15.7 8.20 

20.1 to 30 21 10.5 8.6 16.3 8.40 

30.1 and over, ... 7 11.6 8.8 17.9 7.80 

As on the owner farms, there is no relation between cash 
labor cost and animal units per farm. A better and more satis- 
factory means of measuring the effect of live stock on the use 
of labor on these fanns is that of the measure of work units. 



Table LXIX. — Relation of Live Stock to the Use of Man and Horse Labor 
on 343 Potato Farms Operatetf in Monmouth County, fiew Jersey. 



stock Receipts, 
per Cent, 
of Total. 

5% or less 

5.1 to 10, ....... 

10.1 to 20, 

20.1 to 30, ... 

30.1 and over, . ... 


, Ov 

Work TJnits 
per Matu 
197.6 
196.4 
191.8 
2.S2.I 
284.2 


mers < 

Work TTnitB 
per Horse, 
87.8 
80.7 
78.9 
74.8 
88.5 


, .Leu 

Work Units 
per Han, 

228.2 

226.5 

228.6 

212.5 

237.3 


ajmk , 

Work TTnitB 
per Horse, 
85.8 
88.1 
82.3 
86.1 
93.0 



When measured by the work units, live stock shows no appre- 
ciable difference in the more economical use of labor. This, 
then, is another reason why it is not more profitable on these 
farms. 



83 



RELATION OF PROPORTION OF LIVE STOCK TO ANIMAL UNIT 

. RECEIPTS 

Table LXX. — Relation of Proportion of Total Receipts from Live Stock to 

Total Stock and Animal Unit Receipts on 343 Potato Farms in 

IVIonmouth County, New Jersey. 

Stock , Owners — ^^ , , Tenants ^ ,. Landlords , 

Receipts, Eeceipts Receipts Receipts Receipts Receipts Receipts 

Per Cent. per per Animal per per Animal per per Animal 

of Total. Farm, tTnit. Farm. Unit. Farm. TTnit. 

5% or less, .. $74.10 $20.30 $52.40 $11.60 $34.70 $7.70 

5.1 to 10 309.50 59.60 204.00 30.90 62.20 9.30 

10.1 to 20, 525.50 91.20 352.70 56.90 41.80 6.70 

20.1 to 30 897.80 113.60 621.10 59.00 111.70 10.60 

80.1 and over,. 1,198.90 114.20 900.80 87.80 259.10 22.30 

On the farms with the lesser number of animal units, most of 
the stock products are used by the farmer and his famliy. This 
accounts for the low returns per animal unit. The farms with the 
higher proportion of stock get good returns from their animals 
and should be making profits with such returns. However, it is 
not as much a question of profit but rather a question of what is 
most profitable. In this case stock is unable to compete with 
potatoes. These farmers are able to maintain the fertility and 
give satisfactory employment to their labor without the use of 
live stock. The amount of cheap feed and pasture in this area is 
small. Therefore, it is necessary to keep the stock on land high 
in value and on feed having a high market value. It is quite 
evident that keeping live stock cannot be done on these farms in 
a profitable way so long as potatoes are successful. The relation 
is somewhat dififerent for the tenant farms, since the tenants in 
many cases do not share the stock receipts. When the landlord 
furnishes all the land to raise the hay and maintains the build- 
ings the tenant is given a good bargain with stock. This, then, 
accounts for the tenants' labor income not decreasing as much 
as that of the owners with the greater amount of live stock kept 
on.the farms. However, in no case would it appear advantageous 
for the region to increase its live stock above the amount needed 
to supply the farmers' family. After this need is met, a greater 
amount adds nothing to the profits of farms adapted to potato 
production. This again is a diversion from the results reported 
in nearly all other surveys made up to the present time. It is 
universally supposed that stock is needed to give employment to 
labor during the season when crops are not growing, use up 
waste products and low grade feed, provide for a more stable 
income, and make manure to maintain fertility. Yet on these 
farms none of these platitudes apply. They clearly show that 
stock does not increase the efficiency in any of these phases. 
The very fact that stock is decreasing in the area shows that the 



84 

farmers know that it is not advantageous for the greater number 
of the individuals. Like all other so-called principles of agricul- 
ture, the recommendation that a farmer keep stock so as to 
increase the receipts from his farm, should be made with careful 
consideration of his individual conditions, for what is true with 
one condition is not true with another. There may be a few 
farms of this area of which stock is profitable, but usually it is 
not with present conditions. 

DISTANCE FROM THE RAILROAD 

For some types of farming the distance to market or the rail- 
road is a very important factor influencing farm profits. On 
others this is of minor importance. Whether the distance from 
the market or railroad station is of great importance in the pur- 
chase of a farm or the growing of certain crops and animals 
depends much upon the type of farming. Potatoes are a bulky 
product to market, and one might expect that the distance to 
market would be of considerable influence upon the profits and 
production of potatoes. Practically all of the crop is hauled to 
the railroad station directly from the field, an operation which 
requires much labor if the distance is great. 

RELATION OF DISTANCE TO RAILROAD AND PROFITS 

Table LXXI. — Relation of Distance to the Railroad Station to Labor In- 
come on 194 Farms Operated by Owners In Monmoutht 
County, New Jersey. 

No, with 

Miles to No. of Per Cent. labor Minus Xabor 

Eailroad. Farms. of Total. Income. Income. 

1 or less 4S 25 $1,167 6 

1.1 to 2 51 26 842 8 

2.1 to 3 48 25 761 11 

3.1 to 4, 20 10 1,592 4 

4.1 and over, 27 14 403 10 

The farms nearer to the railroad are making a larger labor 
income than those farther away. As the distance increases the 
profits decrease. Owners of the last class of farms having over 
4 miles to haul their potatoes are not making more than the 
hired men. Not only do these situated farther away from the 
railroad average less profits, but the proportion losing money 
increases with the distance from the railroad. The men who 
are between 3; and 4 miles are making unusually large labor in- 
comes. Upon close analysis of this class it is found that they 
have larger crop areas per farm than any other class, a larger 
acreage of potatoes, and the highest farm receipts from all three 
main sources, potatoes, other crops and stock. Further, there 



85 

were several very unusual farms among- these twenty to make 
the returns very high for the whole number. Since the number 
of these potato farms rapidly grows less after a distance of 
3 miles is exceeded, it is plainly shown that the farmers realize 
the decreased opportunity in raising potatoes under such condi- 
tions. Distance from the railroad station is one of the limiting 
factors for profitable production of the crop and should not be 
overlooked by anyone contemplating potato farming. 

Table LXXII.^ — Relation of Distance to the Railroad Station to Labor In- 
come on 149 Potato Farms Operated by Tenants in Mon- 
mouth County, New Jersey. 

No. with 

Miles to No. of Per Cent. Labor Minns Labor 

Railroad. Farms. of Total. Income. Income. 

1 or less, 31 21 $904 3 

1.1 to 2, , 53 35 723 4 

2.1 to 3 24 16 712 

3.1 to 4 16 11 568 2 

4.1 and over 25 17 786 3 

The difference for the tenants is not as great as that for the 
owners, due possibly to the fact that the tenant keeps miore stock 
when farther from the railroad. Since the tenant very frequently 
keeps all the stock receipts from hogs, chickens, and a small 
number of cows, stock is more profitable for him than for the 
owner. Nevertheless it is quite evident that profits for the tenant 
decrease as the distance from the railroad increases. 

RELATION OF DISTANCE TO RAILROAD TO FARM VALUES. 

Table LXXIII. — Relation of Distance to Railroad and Farm Values on 194 

Potato Farms Operated by Owners In Monmouth County, 

New Jersey 

Farm Acre Crop Acre 
Value Com- Value Com- 
pared with pared with 
That of Farmfl That of Farms 
One Mile or One Mile or 
- Miles to Farm Farm Acre Crop Acre Less from Less from 
Railroad. Value, Value. Value. Railroad. Railroad. 

1 or less, $14,297 $167.30 $209.00 $000 $0.00 

1.1 to 2, 13,559 147.60 197.70 —19.70 —11.30 

2.1 to 3 « 13,363 135.80 189.70 —31.50 —19.30 

S.l to 4, 14,801 128.40 163.00 —38.90 . —46.00 

4.1 and over, .... 14,074 121.20 198.70 —46.10 -10.30 

The farm acre value decreases uniformly with distance from 
the railroad, but the crop acre value decreases far less. Farms 
are too frequently valued at their total area without sufficient 
consideration being given to that part which can be cropped 
economically. The difference between the crop acre value and 
farm acre value for the near farms is $41.70, whereas for thte 
distant farms it is $77.50. Farms rated by their crop acres can 
be bought about as cheap near the railroad as farther away. On 
the other hand, those near the railroad are much more profitable. 



VALUE 
PRR ACRS 



$!Z2D 






eoo 



180 



160 



140 



120 



SHOP ACHE 

VALUE 




4 S 

iilL^S TO SAII^OAD 



Fig. 25. — Relation of Distance to Railroad to Farm Acre and Crop Acre 
Value on 343 Potato Farms in Monmoutln County, New Jersey. 



8; 



Table LXXIV. — Relation of Distance to Railroad' to Farm Values on 149 

Potato Farms Operated by Tenants in IVIonmouth County, 

New Jersey. 

Farm Acre Crop Acre 
Value Cora- Value Com- 
pared with pared with 
That of Farms That of Farms 
One Mile or One Mile or 
Kiles to Farm Farm Acre Crop Acre Less from Les3 from 
B-ailroadi Value. Value. Value. Railroad. Railroad. 

1 or less $16,516 $164.40 $203.30 $00.00 $0.00 

1.1 to 2 18,536 148.70 217.80 -'—15.70 -1-14 00 

2.1 to 3 15,233 141.60 187.80 —22.80 —15.50 

3.1 to -4 17,312 136.10 205.10 —28.30 -f-1.80 

4.1 and over 15,804 105.00 165.30 —59.40 —38.00 

The tenant farms decrease less in crop acre value than do the 
owners, yet the difference is not uniform. The farm values 
decrease uniformly with an increase in distance, as they should. 

The crop acres are the portion of the farm from which the 
major receipts are derived. Again, a crop acre 4 miles from the 
railroad would not be worth as much as one a mile away, because 
of increased cost of operation. When farm values are based 
upon total farm acreage they are frequently misleading. A 
calculation based upon the acres which are the source of crop 
production would be a more accurate method. For the produc- 
tion of potatoes the farms nearer the railroad are comparatively 
cheaper than those farther away. 



RELATION OF DISTANCE TO RAILROAD TO CROPS, STOCK AND 

LABOR 

Table LXXV. — Relation of Distance to the Railroad to Crops and Stock on 
343 Potato Farms In IVIonmouth County, New Jersey. 



Miles to 
Railroad. 
1 or less, ,-. 
1.1 to 2, .„- 
2.1 to 3, ... 
3.1 to 4, .., 
4.1 and over. 



Miles to 
Railroad, 
1 or less, . - 
1.1 to 2, .„- 
2.1 to 3, „,. 
3.1 to 4, .,. 
4.1 and over. 



' 


uwnera - 




Productive 


Acres of 


Acres of 


Total Crop 


Animal Units 


Potatoes. 


Other Crops. 


Acres. 


per Farm. 


29.6 


38.8 


■ 68.4 


5.0 


24.1 


43.5 


67.6 


4.8 


27.5 


51.5 


78.0 


6.2 


33.2 


54.5 


87.7 


7.2 


19.1 


51.7 

. Tonairb 


70.8 
J 


5.2 

Productive 


Acres of 


Acres of 


Total Crop 


Animal Units 


Potatoes, 


Other Crops. 


Acres, 


per Farm. 


S6.5 


44.0 


SO. 5 


3.4 


28.7 


56.6 


85.3 


4.9 


29.1 


61.1 


90.2 


6.2 


26.3 


67.8 


84.4 


5.2 


2S.6 


69.0 


95.6 


^ 



As the distance from the railroad increases the acreage of 
potatoes decreases, while the proportion of other crop acres and 
animal units increases. As the distance increases, therefore, it 
appears that potatoes are to some extent replaced by other crops, 



such as corn, rye, wheat and stock. This indicates again that the 
potato crop becomes less profitable with increased distance. 



Table LXXVI. — Relation of Distance to the Railroad to Work Units on 343 
Potato Farms in Monmouth County, New Jersey. 

, Owners » , ^ — Tenants , 

Miles to Work Units Work Units Work Units Work Units 

Railroad. per Man. per Horse, per Man. per Horse. 

1 or less, 1S0.8 S2.7 212.8 92.9 

1.] to 2 207.2 79.7 220.9 S5.4 

2.1 to 3 206.3 S4.6 248.2 85.4 

3.1 to 4 239.6 91.9 224.3 81.6 

4.1 and over, 195.5 761,5 319.1 85.6 

The distance from the railroad station apparently does not 
affect the amount of productive work done or number of crop 
acres handled by men and horses. This is not what one would 
expect, and there must be some other factor entering into these 
results. It certainly requires more man and horse labor to raise 
and haul the potatoes from an acre of land when 4 miles from 
the railroad than when i mile. If we examine the receipts per 
crop acre for the farms near the railroad, this may be explained. 



Table LXXVII. — Relation of Distance to the Railroad to Receipts on 343 
Potato Farms in Monmouth County, New Jersey. 





' 




From 






From 






From 


Stock per 




From 


Stock per 


Miles to 


From 


Other 


Animal 


From 


Other 


Animal 


Railroad. 


Potatoes, 


Crops. 


Unit. 


Potatoes. 


Crops, 


Unit. 


1 or less, . . 


$127.50 


$14.80 


$70.70 


$62.90 


$6.70 


$61.20 


1.1 to 2 


118.30 


15.20 


64.00 


65.30 


6.80 


60.40 


2.1 to S 


116.90 


13.50 


63.80 


63.90 


7.00 


58.70 


3.1 to 4 


138.90 


16.80 


75.70 


55.70 


9.50 


48.90 


4.1 and over,. 


123.30 


14.20 


54.60 


65.50 


6.80 


69.00 



The farms near the railroad are obtaining the same receipts per 
crop acre for all crops and stock as those farther away. Since 
those farther away have a larger proportion of acres in crops 
other than potatoes, a smaller proportion of com, hay, rye or 
wheat raised is required on the farm for the stock and cover crops. 
Yet farmers near the railroad sell just as much per acre as those 
farther away with a larger acreage of crops other than potatoes. 
Men nearer the railroad are putting more labor on the crops 
and stock for they are getting higher returns per acre for stock 
and cro^s other than potatoes. This greater amount of work 
upon other crops may account for the use of as much labor per 
crop acre of potatoes on the farms near the railroad as for those 
farther away. Again, the hauling of potatoes must be done in 



89 

a short period during the harvesting. It is possible that the 
amount of extra time consumed in getting these potatoes to 
market would not show very markedly in the total work done 
for the year. Therefore, it is largely a matter of distance and 
getting the potatoes to the railroad in a comparatively short 
period. The time necessary for hauling may limit the number 
of acres planted, and in that way influence profits more than the 
increased labor involved. It is difficult for a farmer who is 
located far from the railroad to haul a large acreage of potatoes 
to the depot, during the harvest season, with his horses and equip- 
ment needed to raise them. 

Distance to the railroad is a factor influencing profits, propor- 
tion of crop acres in potatoes and the labor of marketing. The 
crop acre value is less influenced than is the real estate value. 
After a distance of 4 miles from the railroad is reached potatoes 
rapidly become less profitable. 

FARM EFFICIENCY 

In order to measure the efficiency of a farm in its operations 
it is necessary to establish a measure for the amount of productive 
work actually accomplished by the men and horses operating the 
place. To a certain extent this is a measure of a man's ability 
to handle or manage his men and horses, in order to get a large 
amount of productive work done. For this measure the work 
unit is used, intended to represent the average amount of work 
done in a day by the average workman on the farm. Some men 
get more work done because they are better managers. They do 
not necessarily work more days in a year or more hours in a day, 
but, through good management and careful farm organization, 
they get more accomplished for the time spent. The size and the 
arrangement of the farm also will affect the amount of work 
accomplished per man and horse. 

RELATION OF WORK UNITS AND PROFITS 

Table LXXVI 1 1.— Relation of Productive Work Units per Man to the 
Profits on 194 Potato Farms Operated by Owners in Mon- 
mouth County, New Jersey. 







Number 














•with Minus 


Average 








Work Units 


No. of 


Labor 


Labor 


Crop 


"Work TTnits 


■Work Units 


per Man. 


Farms. 


Income. 


Income. 


Acres. 


per Man. 


per Horse. 


140 or less, . 


33 


14 


$53 


50.8 


118.2 


66.8 


141 to 180, . 


47 


11 


700 


67.7 


162.1 


77.8 


181 to 220, . 


37 


5 


895 


71.2 


202.2 


85.7 


221 to 260, . 


34 


2 


1,219 


81.1 


240.6 


88.9 


261 to 300, . 


23 


3 


1,111 


86.4 


274.8 


93.0 


301 and over, 


20 


4 


2,039 


96.0 


354.3 


103.6 



7 EX 



90 

The ability to accomplish a large amount of work per man 
and horse is a very important factor in the success of these farms. 
It appears almost as important as size and production. Men who 
get an average of ii8 days' work done out of the year have an 
average labor income of only $53 for the year, while the men 
who get 354.3 days' work for the year have a labor income of 
$2,039. As the number of work units per man increases the 
labor income increases. Also, as the work units per man increase, 
those per horse increase. The fact that the last 20 men have an 
average number of work units per man of 354.3 does not neces- 
sarily mean that these men must work harder than the others, 
but merely that they get more accomplished. This may be possi- 
ble through a number of different agencies, such as size of farm, 
shape and convenience oi fields, ability to plan work properly, 
or some other agency such as proper equipment, machinery, 
horses, tools, etc. When time is lost it makes little difference 
how, for it is a great leakage no matter from, what source this 
loss may occur. Many of these losses can be controlled by the 
operator, and to a large extent they are a measure of his ability 
to manage and get work done. These work units might be termed 
a measure of efficiency in the management of a farm. 



Table LXXIX. — Relation of Productive Work Units per iVian to the Profits 

on 149 Potato Farms Operated by Tenants in iVionmouth 

County, New Jersey. 







Number 














with Minus 


Average 








Work TTnits 


No. of 


Labor 


Labor 


Crop Acres 


Work Units 


Work ITnits 


per Man 


Farms. 


Income. 


Income. 


per Farm. 


per Man. 


per Horse, 


140 or less, .... 


8 


3 


.$63 


62.3 


121.6 


69.5 


141 to ISO, 


29 


3 


613 


73.1 


164.0 


77.5 


ISl to 220, 


35 


2 


643 


87.5 


199.6 


84.1 


221 to 2C0, 


29 


1 


807 


91.7 


239.9 


89.6 


261 to 300, 


25 


2 


856 


86.3 


278.4 


99.4 


301 and over, . . 


23 


1 


1,158 


105.6 


353.1 


95.6 



The tenant farms show the same relation as the owners' farms, 
except that there are less men in the class with 140 or less work 
units. Tenants usually are more economical in the use of labor 
than the owners. It is necessary that they should be, since' they 
cannot live on the interest of their capital as some owners. 
This, then, necessitates a greater degree of efficiency on the part 
of the tenant. The average number of work units per man for 
the tenant farms is 233.2 per man while for the owners it is 
209.2, a difference of 24 work units more per man for these rented 
farms. An inefficient owner had far better rent his farm to a 
good tenant. His farm would be of greater value to the com- 
munity. The men who get only a small amount of work accom- 



91 

plished are not necessarily idle. They may be working just as 
hard as those getting- much done, but it is not productive of 
profits. Profitable farming consists of raising things to sell. To 
that end the labor should be employed. It is quite possible for a 



lABOH 
IKC01£E 



♦2100 



1900 



(^ 



1700 






1 


/ 


1600 






/ 




1300 




OWKEHS 


/ 


• 


1100 








/^ 


900 


— 


/ TEl^ANTS 


X 




700 










500 










300 


1, 








100 


-1 


1 1 




1 


100 


150 200 2S0 


300 


360 






WORK inTITS F3R XS3> 







Fig. 26. — Relation of Productive Work Units per IVIan to Labor Income 
on 343 Farms in IVlonmouth County, New Jersey. 



92 

man to keep himself and men busy many days of the year at work 
which brings no return or is not efficiently used. Operations, 
such as hoeing weeds, that could have been destroyed by timely 
cultivation, building fancy fences, or plowing when the soil is 
not in proper condition, are all wasteful of labor. 

It is quite noticeable that the size of the farm increases with 
the number of productive work units per man. Whether this 
great difference would show in farms of the same size might be 
questioned. The following divisions in Table LXX'X have been 
made tO' eliminate the size of the farm as an influencing factor. 
This method furnishes a more accurate measure oif the farmer's 
efficiency in managing his labor operations for productive 
purposes on farms of the same size. 



Table LXXX. — Relation of Productive Man Work Units on 194 Potato 

Farms of Equal Size Operated by Owners in iVlonmouth 

County, New Jersey. 

, Farms of 55 or Less Crop Acres , 

Productive Crop Work "Work Bbls. of 

Work Units No. of Labor Acres TJnits ITnits Potatoes 

per Man. Farms. Income. per Farm, per Horse, per Man, per Acre, 

140 or less 23 —$125.00 36.9 61.0 117.1 75.9 

141 to 195 22 +341.00 34.8 71.4 167.7 74.9 

196 and over, 21 491.00 41.6 78.3 247.4 81.1 



-Farms of 56 to 85 Crop Acres- 



170 or less, 19 $668.40 71.2 75.0 142.9 82.3 

171 to 200, 20 894.20 73.2 74.6 189.9 85.7 

221 and over 24 1,180.30 70.5 88.0 275.3 80.5 



200 or less, 18 

211 to 250, 20 

251 and over, 27 



$668.40 ■ 


112.1 


77.0 


358.3 


82.1 


1,605.50 


103.2 


91.6 


222.9 


89.0 


2,229.20 


117.5 


100.3 


308.8 


80.2 



Though there are a smaller number of the small farms with a 
large work unit per man, there is a wide variation in amount of 
productive work accomplished upon individual farms o^f the same 
size. On the small farms the highest average is but 247.4 
productive man work units, while on the large farms the highest 
class is 308.8 productive man work units. In all cases there is 
a direct relation between the labor income per farm and the num- 
ber of productive man work units. The same is true of the horse 
work units, as one might expect. They almost invariably bear 
the same relation as the man work units. The yield of potatoes 
on these farms is approximately the same regardless of work 
units. There appears to be no relation to yield. 



93 



Table LXXXI. — Relation of Productive iVIan Work Units on 149 Potato 

Farms of Equal Size Operated by Tenants in IVlonmouth 

County, New Jersey. 

, Farms of 55 or Less Crop Acres , 

Productive Crop "Work Work Bbls. of 

Work Units No. of Labor Acres Units Units Potatoes. 

per Man, Farms. Income. per Farm, per Horse, per Man. per Acre. 

140 or less, 2 $129.00 16.0 38.8 77.7 86.6 

141 to 195 10 335.00 40.8 67.4 163.9 84 4 

196 and over 6 708.00 41.0 89.2 252.8 82.5 

, Farms of 56 to 85 Crop Acres , 

170 or less 10 $287.00 71.6 62.2 145.8 90 7 

171 to 220 17 591.00 72.7 79.6 190.4 83.9 

221 and over 29 799.00 71.1 82.2 278.1 85.1 

I Farms of 86 Crop Acres and Over ., 

200 or less 22 $599.00 ' 101.4 83.2 175.1 82 8 

201 to 250, 24 972.00 105.6 88.3 225.8 89.0 

251 and over 29 1,095.00 119.7 98.7 296.5 83.6 

The tenant farms show the same relation as do the owners' 
farms when divided so as to ehminate the factor of size. That 
individual men should accomplish so much more work through 
good management or good organization is to be expected. This 
is a strong argument for more attention to the efficient opera- 
tion of the farm. As yet but little interest has been manifested 
in this phase of agriculture. At present the American farmer 
is reputed for the relatively high degree of efficiency in his farm 
operations. But the opportunity for improvement is great. 
This not only means much to the individual, but also' to a marked 
extent affects the welfare of the state and of the nation. 

RELATION OF THE EFFICIENCY OF THE FARMER TO 
PROFITS ON THE FARM 

Unfortunately, we have no accurate measure to illustrate the 
efficiency of the individual farmer or the man who is in charge. 
A great deal of the agricultural teaching would tend to show 
that success is largely due tO' the man. This is undoubtedly 
true in a measure, but not to the extent to which it is credited. 
No matter how expert or how efficient a man may be, he can- 
not produce something out of nothing. The manager of a large 
corporation could not earn $20,000 a year for the company if 
he were an ordinary laborer, since as a laborer he would not 
have the opportunity to use his skill to a good advantage. The 
same is true of the farmer. He must have the necessary con- 
ditions for success on a farm before he can show profitable 
returns. There are some men on small farms who have ability 
to run a farm properly, yet who rarely have a labor income 
much above the wages of a hired man. A large and a small 
farm, might be compared with the manager and the laborer of 



94 



a corporation. Both might be equally efficient and capable, yet 
the laborer must advance to the position of manager before he 
can influence the success of the company to any appreciable ex- 
tent. So too in farming, a man must have the opportunities 
necessary for success. There are, then, successful men and suc- 
cessful farms. This is a study of successful farms rather than 
of successful farmers. Failures in farming are due to unsuc- 
cessful farms as well as to unsuccessful farmers. The former 
are more easily measured than the latter. By thus establish- 
ing the conditions necessary for a successful farm we elimi- 
nate the personal factor which is entirely a different problem. 
Throughout all this work it will be noticed that not all large 
farms were successful, not all farms producing high yields were 
successful, not all farms near to the railroad were successful, 
indicating that even though the farm is successful the farmer 
may not be so, a condition which may again cause a marked 
failure. 

The following four farms illustrate lack of efficiency in fac- 
tors that may be controlled by the operator. 

Table LXXXII. — A Comparison of Organization and Incomes on 4 Potato 

Farms. 

CAPITAIr— 



Real Estate, 
Live Stock, 
Mackinery, . 

Feed 

Cash 



Total, . 

RECEIPTS— 

Potatoes 

Other Crops, 

Stock 

Miscellaneous, 



Total, 



EXPENSES— 

Labor, , 

Fertilizer and Lime, 
Miscellaneous , 



Total, 



MAN WORK UNITS — 
Per Man, 



HORSE WORK UNITS— 
Per Horse 



Receipts from Live Stock — 
Butter, 

Eggs, ; 

Calves, 

Hogs, 

Pigs ' 

Chickens, ...".. 

Milk, '.'.'.'.'.'.'. 

Capons .'.'.' 

Cows, .' 

Steers 



Farm No. 1. 


Farm No. 2. 


Farm No, 3. 


Farm No. 4 


$12,000 


$15,000 


$15,000 


$20,000 


1,061 


1,823 


1,825 


1,465 


579 


818 


621 


1,481 


205 


90 


504 


830 


1,500 


2,000 


500 


500 


$15,345 


$19,731 


$18,450 


$24,276 


?1,SOO 


$3,120 


$3,200 


$2,552 


995 


240 


930 


089 


358 


410 


1,404 


37 




1600 


20 


.... 


$3,153 


$4,370 


$5,554 


$3,278 




$730 


$624 


$1,156 


$616 


522 


70S 


924 


510 


910 


800 


1,382 


1,036 
















$2,162 


$2,132 


$3,462 




$2,162 








196 


258 


314 


189 


70 


74 


107 


69 


I. 


II. 


III. 


IV. 


$30 


$25 






50 


50 


$312 


$30 


15 


210 


35 


270 


84 








54 


60 


50 


> • . . 


140 




50 
SOO 

75 
132 


22 



95 



1 

I. 

Farm Income $901 

Interest on Capital, . , 767 

Labor Income 224 

Distance to Railroad 1% Miles. 

Cro^^cresiAyieW-^- ■ ___ 

'^T^ote-'TbusiielsX; TTTTTTr::;:;::;;;;—-- — 84 

Wheat (bushels) ^__]^]|^ 35 

Rye .!_;;~~~ — 424 

Hay (tons), -ZUl^^^i^T. 

Potatoes (barrels) , .ZI^^^IT"" — ''^ 

Apples, »^_^^^^^~~ SO 

Stock — 

Horses, 6 

Cows, 2 

Heifers, Calves and Bulls, ... 1 

Hogs ' a 8 

Chickens, So 

Crop Acreage — 

Apples 1 

Potatoes, 18 

Corn 20 

Rye, 20 

Buckwheat, 8 

Hay, 10 

Wheat 7 



11. 


III. 


IV. 


$2.2ftS 


$3,422 


—$484 


9R7 


923 


—1,200 


1,221 


2,499 


-1,693 


2% Miles. 


21/2 Miles. 


2% Miles. 


86 


87 


86 


50 


80 


40 
20 


17 bu. 


1% T. 




1%. 


1% 


1 


80 ' 


77 


70 


6 


K 


7 


7 


7 


6 


2 




1 


3 


• • • ■ 


3 


60 


175 


40 
9 


30 


30 


27 


12 


16 


25. 


6 


10 





38 


22 


15. 
lO 



^ From boarding horses. 2 g pigs, 1 sow, 1 hog 



These four farms have approximately the same conditions 
necessary to make money. They have 84 to 87 crop acres, their 
yields of potatoes ranging from 70 to 80 barrels per acre. The 
expenses for the first three farms are almost identical, while 
for the fourth they are about $1,300 more. The receipts for 
this money spent range from $3,153 to $5,554. The farm with 
the least expense had the greatest receipts, while the farm with 
the highest expense had $184 less receipts than the actual ex- 
pense. The operator spent too much for labor, fertilizer, and 
seed potatoes, and received for them a low return. The work 
units per man and per horse were low. The operator of the 
fourth farm worked at the rate of 189 days out of the year for 
each man employed and used the horses but 69 days. This is 
extremely low and shows that the fourth man was a poor man- 
ager. His farm had the conditions necessary for success, but 
he was not successful in conducting it. The third and most 
successful farm obtained the greatest receipts from the least ex- 
pense. . The operator of this place knew how to handle labor 
and plan his work so as to get a large amount of work done. 
This farmer had 314 days' work in the year for each man em- 
ployed. He knew where to invest money so that it would bring 
a return. These, then, might be termed successful farms, but 
the men operating them are not all successful farmers. The 
public ordinarily blames the farmer for his lack of success, feel-- 



96 

ing that he is incapable. More frequently this is due to the 
conditions under which he is working. When these are properly- 
adjusted, farmers as a class are prosperous people. If the proper 
facilities are not at hand he will tend to become a peasant, as 
so frequently is the case in European agriculture. Studies such 
as these throw definite light upon the requirements necessary 
to develop a strong and prosperous rural people. No industry 
that is not based upon a strong economic foundation can be 
successfully maintained. Economic principles, though more 
difficult to work out, are nevertheless important in American 
agriculture. 

REORGANIZATION 

The reorganization of a farm should be approached in a very 
conservative manner. Any change will affect the whole system, 
and therefore much care should be exercised in contemplated 
changes. In Table LXXiXII is given the relative acreage devoted 
to different crops as found in this survey, together with the rela- 
tive acreage which the results of this survey indicate to be most 
profitable. 

Table LXXXIII. — Relative Acreage of Crops in iVlonmoutln County Indi- 
cated to be Most Profitable as a Result of This Survey, Com- 
pared with the Relative Acreage Found. 

Recommended Crops. 
Crop. Acres. 

Potatoes, 50.0 

Alfalfa or Grass, 16.0 

Corn, 12.0 

Fruit, 0.8 



Crop. 


Present Crops. 


Acres. 
28.2 


Hay 




16.8 






13.6 






8.7 






3.7 


Wheat, 




3.4 


Alfalfa, . . 




0.9 






0.7 






2.8 









Total, 



The rotation for these three crops could be worked out into a 
5-year rotation as follows : 

Suggested Rotation. 



Field. 



1st Year. 


2d Year. 


3d Year. 


4th Year. 


5th Year. 


Potatoes 


Potatoes 


Potatoes 


Grass 


Com 


Potatoes 


Potatoes 


Grass 


Corn 


Potatoes 


Potatoes 


Grass 


Corn 


Potatoes 


Potatoes 


Grass 


Com 


Potatoes 


Potatoes 


Potatoes 


Com 


Potatoes 


Potatoes 


Potatoes 


Grass 



Such a rotation would provide for a large proportion of the 
most profitable crop, furnish sufficient corn and hay for the stock 
and allow for the maintenance of organic matter so essential in 
potato farming. The hay should consist largely of clover or 



97 

alfalfa. As alfalfa is more successfully grown it may well be 
alfalfa entirely rather than clover and grass. In any case alfalfa 
should be mixed into the grass seed until it is demonstrated that 
it can be successfully grown, when alfalfa should be used ex- 
clusively with some red clover when desired. This should provide 
for 2 toi 3 tons of hay per acre and leave a large amount of 
organic matter to plow under. The expense of seeding to hay 
would not be much greater than seeding to a good cover crop. 
Anyone desiring to risk the use of lime on potato land could 
apply ground limestone at the rate oif one ton per acre, and 
harrow in the soil before seeding the grass or alfalfa. Potatoes 
then would not come on this land until the third year after it was 
limed. This should to- a large extent prevent the growth of scab 
due to liming- for hay. Giants in particular would be adapted 
to such practice since they are more resistant to scab. 

This rotation would require no extra plowing for grass or 
alfalfa when seeded after potatoes, but only sufficient harrowing 
to produce a firm compact seed-bed underneath and a fine loose 
uniform soil mulch on top. 

When alfalfa is seeded alone on fields that have never grown 
it before, considerable care is needed to make it a sure and sue- 
cessful crop. Lime at the rate of 2 to 4 tons of ground lime- 
stone, or I to 2 tons O'f burned lime should be applied. The field 
should be inoculated with 300 to 500 pounds of alfalfa soil 
taken from another successful alfalfa field. This soil should be 
screened, broadcasted and harrowed in as soon as applied, in 
order to prevent the killing of the bacteria by the sun's rays. 
When a seed bed, free from weeds, compact underneath, loose 
and fine on the surface is obtained, good clean reliable seed should 
be sown in August at the rate of 20' pounds to the acre. When 
this crop is used in the rotation with potatoes, three cuttings can 
be made of which the first two would be made into hay while the 
third can be left on the ground to plow under with the sod and 
furnish more organic matter in the soil. If not needed for this 
purpose it can be made into hay to sell. There certainly is not 
nearly the acreage o^ alfalfa on these farms that can be grown. 
The large yield of forage of high quality, and the excellent sod 
for a succeeding crop of corn or potatoes, would warrant a wider 
use of this hay crop. 

THE CORN CROP 

Though this is not a new crop it still is not nearly improved to 
the extent that it should be in this area. One source of loss is the 



98 

lack of standard varieties known to be superior for this county. 
Nearly every farmer grows some unnamed variety obtained 
from a neighbor sometime during his period of farming. A few 
varieties known to be superior yielders for the county would add 
materially to the revenue of these farms with but little added 
expense. Corn is not as profitable a crop as potatoes on these 
farms but most farmers may find it profitable to raise enough to 
feed their stock and work horses. It also furnishes forage and 
bedding for the stock as well as grain. 

THE POTATO 

As the main money crop, this is deserving of most attention. 
In this area American Giants, commonly called "long stock," are 
largely grown by most of the farmers. On the 343 potato farms 
9,075 acres were of Giants, yielding 84.9 barrels per acre, while 
522 acres were of round stock with a yield of 58.2 barrels per 
acre. This is a marked difference and explains one of the reasons 
for the greater preference for Giants. Though round stock 
brings a greater price per bushel, the difference is not sufficient 
to compensate for the smaller yield of the round stock. Again, 
but little sorting is necessary for the Giants as they are handled, 
permitting the use of unskilled laborers for pickers. This, too, is 
a very hardy potato which resists disease, is smooth with shallow 
eyes and sells well on the wholesale market. For these reasons 
this is a very desirable variety to grow on this area. In recent 
years the most troublesome factor in production of the potato 
crop is the procuring of good, pure, viable seed free from disease. 
Practically all of the seed is raised by Maine and New York 
State growers. Much diseased seed of low quality has been 
obtained in recent years. This is a serious problem with the 
farmers, and may compel them to attempt the production of their 
own seed stock through late planting, which will allow the major 
growth to be made during cool weather. In some of the southern 
potato sections as well as in South Jersey, this practice has be- 
come a prominent industry, by which the growers produce a seed 
potato of a very high quality. This, if once known to be success- 
ful in this area, would be the satisfactory solution of the seed 
potato problem for these farms. Not only could they grow 
potatoes known to be free from, disease, but improved strains 
could be selected in the same manner as when breeding for high 
producing strains of corn. These are very important problems 
in this area and need immediate attention. Round varieties, such 
as Irish Cobbler, Gold Coin, Norcross, Green Mountain and Mills' 



99 

Pride, are grown to a limited extent. A few acres of Cobblers are 
frequently planted to dig and market early to the shore trade. 
They aid in the labor distribution for the crop and are in good 
demand for local and retail trade. 



MEASURE OF EFFICIENCY FOR POTATO FARMS IN MONMOUTH 

COUNTY 

Any farm that will measure up to or siirpass this standard 
in all four points is practically sure of success. 



PROMTS 



AVERAGE 



4A&2B. 



#ft?n 



^326 LOSS 




4 measures 
abovs av. 



2 roeagurea above av, 
2 ^ "belo^ " 



1 -measure above av. 
3 " below ", 



Fig. 27. — Four Measures: Size, Production, Proportion of Crop Acres in 
Potatoes^ and Work Units per Man; and Their Effect on Profits. 

Most farms have one or two of these measures as good as or 
better than the average, many have three as good or better, but 
only a few are successful enough to have all four major measures, 
crop acres, potato yield per acre, proportion of crop acres in pota- 



lOO 

toes and productive work units per man or the number of days' 
work accomplished by each man on crop and stock. When all 
four measures are as good as or better than the average, maxi- 
mum success is obtained. Two measures allow less profit while 
the third farm with 3 measures below the average lost money. A 
well organized farm makes a successful farm. It considers all 
important measures for success. 

The average number of crop acres per farm is 78.8; barrels 
of potatoes per acre, 84; proportion of crop areas in potatoes, 
36 per cent., and an average of 219 productive work units per 
man. One might not expect it to be difficult to find farms which 
were of the average grade, or better than the average in all 
these four factors. Yet, out of the total 343 potato farms, there 
were only 9 owners' farms and 13 tenants' farms, which were as 
high as or higher than the average in all four points. The 
operators of these 9 potato owners' farms which met this stand- 
ard made an average labor income of $4,578 while the 13 tenants 
made an average labor income of $1,856. None of the operators 
of these 22 farms lost any money. The lowest labor income for 
the owners was $1,753, while that for the tenants was $868. A 
man who can take a farm of 78.8 crop acres or more, obtain a 
yield of 84 barrels of potatoes or more, have 36 per cent, or 
more crop acres in potatoes, and get 219 or more productive 
work units per man done for the year, is apparently certain of 
profitable returns for his investment and effort. All of these 
four factors are quite important. Each, as an individual, is 
important and when all are possessed by one farm, large profits 
are indicated. Of these 9 potato owner farms, the largest pro- 
duced a phenomenal return of $10,343, while the largest labor 
income for the tenant farms was $3,255. One cash tenant who 
had an unusually good bargain, made a labor income of $3,257, 
with his work units below the average, although all other fac- 
tors were above. However, he made it through his low casK 
rental. Of the total 370 farms, there were none which were 25 
per cent, or more above the average in all the four factors, size, 
potato yield, crop acres of potatoes and man work units. These, 
then, are four very important measures for a successful potato^ 
farm in this area, and can be used by the individual farmer as 
a standard for measuring his own efficiency. 



lOI 



SUMMARY 



The average labor income for the Monmouth County potato 
farms, included in this survey is $842. The cash tenants have 
the largest average labor income of $938, while the owners have 
$917, and share tenants $739. 

Forty-five per cent, of the potato farms are operated by 
tenants. 

Cash renting is most profitable for the tenant who is a good 
farmer. 

Landlords get a return bf 8.3 per cent, on their investment, 
not including rise of land values. 

The system of share renting is too arbitrary, and does not 
consider differences as found on individual farms that ^ect 
economical farm operations. 

Ten per cent, of the owners and part owners get a labor in- 
come of over $2,500. 

Owners making th^^^gh^stjiiabo^^^^ 
$20,000 and $30,000 rol^^-^aaibr Tr m c omG_Q 43esy=j--J $^^0 - 
and part owners $15,000 to $20,000. 

Thirty per cent, of the owners who had a capital between 
jarcron $20,000 and $30,000 made a labor income of over $2,500. 

Thirty-four per cent, of the tenants who had between $5,000 
and $7,000 made a labor income of over $1,500. 

Farm owners who have a capital between $20,000 and $30,000 
receive a yearly return of $121 per thousand dollars invested. 

The owners have 80 per cent, of their capital in real estate, 8 
per cent, in live stock, 5 per cent, in equipment, 2 per cent, in 
supplies and 5 per cent, in cash. 

Five per cent, of the total capital invested is in work horses 
and 3 per cent, in productive live stock. 

The average farm investment for the owners is $17,673, for 
the share tenants $3,369, and for the cash tenants $3,085. 

The farm profits increase with the increase of crop acres per 
farm for both owner and tenant farms. 

The larger farms are far more efficient in the use of man. 
horse and machinery labor than are the smaller farms. 

The larger farms have a smaller proportion of their capital 
invested in buildings. 

Farm and crop acre values decrease as size increases for all 
farms regardless of tenantry. 

Landlords receive as great a percentage of money return on 
small h&s^ as on large farms. 



102 



The potato yields are fully as good on large as on small farms. 
Large receipts are necessary for large profits. 

The average sized farm! for the owners is 73, crop acres, and 
for the tenants 87 crop acres. 

Size of farm has a direct relation to the depreciation rate tO' be 
charged for buildings and equipment. 

The average acre yield for potatoes was 83 barrels for the 
owner farms, and 84.7 barrels for the tenant farms. 

Profits are greater with each increase of potato yield per acre. 

Men and horses handle as many crop acres on the heavy yield- 
ing farms as upon the light yielding farms. 

The acre cost of producing potatoes is $85.15. The cost per 
barrel is 92 cents. 

Farmers producing 60 barrels or less per acre lose money. 

No class of farmers are raising higher yields of potatoes than 
are profitable. 

Less than one farm out of twenty had a yield 20 per cent. 
above the average. 

The larger the proportion of crop acres in potatoes the greater 
is the labor income. ' '' " 

The potato crop in this area lends itself admirably to high 
specialization. 

The potato crop affords as good a distribution of labor for the 
men and horses as more diversified crops. 

Lack of rotation is not decreasing potato yields. 

Live stock above what is needed for the farmer's personal 
use is not profitable on most farms. 

Live stock is not essential in maintaining fertility. 

Distance to the railroad station has an important bearing upon 
the profits derived from these potato farms. 

Farm' acre values decrease as distance from the railroad in- 
creases, but crop acre values decrease less rapidly. 

The proportion of crop acres in potatoes decreases with dis- 
tance from the railroad. 

After a distance from' the railroad of 4 or more miles has been 
reached, potatoes show a low return. 

The efficiency in the operation of the farm varies widely and 
affects the profits greatly. 

Cooperative buying and selling has proved very successful in 
this region. 

Farm values are based on farm acres rather than on crop acres. 

Diversification lowers profits on these farms. 



I03 

The following are the four major measures of a successful 
farm in this area : 

1. Crop acres. 

2. Yield. 

3. Proportion of area in potatoes. 

4. Work units per man, or amount of work accom- 
plished per man. 

ACKNOWLEDGMENTS 

The writer takes pleasure in expressing his appreciation to 
Prof. K. 'C. Livermore and Dr. G. F. Warren for their assistance 
and suggestions in the preparation of this work; also to A. G. 
Waller for his suggestions and his assistance in reading the manu- 
script, collecting, checking and tabulating the data; to D. A. 
Coleman, R. C. Cook, H. B. Holcomb, R. M. Hubbard, E. C. 
Stillwell, L. N. Lewis and F. C. Johnson, for assistance in col- 
lecting the data; to Miss Grace Read for her able assistance in 
tabulation of the work, and to the farmers who co-operated so 
that the gathering of the data was possible. 



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